Strong Employment Data Could Reprice Fed Expectations

Strong employment data could strengthen expectations that the Fed may delay or reduce interest rate cuts, thereby weighing on risk appetite. SPX is already down 1.69% intraday at 7568 and trading below its SMA20/SMA50; RSI at 40 indicates weakness but not oversold. MACD is in negative territory but slightly above its signal line, suggesting that downside momentum has not yet accelerated. In the short term, the 7500-7550 support zone may be tested; rebound buying could remain limited. Nevertheless, it is too early to expect a trend reversal based on a single data point, so I anticipate a cautious downward bias.

DXY is at 101.27, trading weakly with a 0.49% decline over 24 hours; RSI at 32 is near oversold territory, which could set the stage for short-term rebound buying. Strong employment data has the potential to delay Fed rate cut expectations; this scenario supports a repricing in favor of the dollar. However, MACD is negative and below the signal line, and the price is below SMA20 and SMA50, indicating that the upside may be limited. The impact of the news depends on how strong the data comes in and how much the market has priced it in; therefore, although I see the direction as upward, I keep confidence at a moderate level. In the short term, the 101.50-101.60 resistance zone will be critical.