US Surprise Job Loss in July, Unemployment Rate Falls

The surprise employment loss could dampen risk appetite as a sign of economic slowdown and create selling pressure on the index in the short term. However, the decline in the unemployment rate paints a mixed picture, which may prevent the decline from becoming too severe. In technical indicators, the RSI approaching 65 points to overbought conditions, while the MACD crossing below its signal line confirms a loss of momentum. Although the price staying above the 20-day moving average provides support, the news flow supports a downward correction in the short term. Therefore, I expect a limited pullback over a 1-3 day horizon.

The surprise employment loss could reduce risk appetite as a sign of economic slowdown and put pressure on the NDX. However, the decline in the unemployment rate paints a mixed picture, which may prevent a sharp selloff. Technically, the RSI at 64 is near overbought territory, while the MACD remains below its signal line, indicating short-term weakness. Although the price is above the SMA20 and SMA50, the news flow and momentum indicators increase the likelihood of a downward correction in the near term. Therefore, I expect a limited decline over a 1-3 day horizon.