Stock futures drop more than 400 points after strong U.S job data

The stock market is back under bearish pressure today after the release of U.S. job data. Non-farm employment added 263k jobs compared to 200k expectations. The strong numbers could become a catalyst for further interest-rate hikes by the Fed. Traders will continue to monitor the market reactions for now. A bearish movement might happen to test the support level before further upside.

Technical Analysis

Dow Jones Industrial Average (INDU)

We could say that the DJIA index is on a bullish track after further upside above the trendline and daily SMA 200. There is a bearish attempt but not enough to bring the index down. At the current time, if the index trade lowers, then the trendline and 32,500 – 33,250 area will become the support area to watch.

Microsoft Corp (MSFT)

MSFT share prices are trading below the daily SMA 200 and each bullish movement is a corrective movement. If the share prices get rejected with a strong bearish reaction at the daily SMA 200 then traders will expect a bearish continuation. On the other hand, a close above the averages and further bullish momentum will bring the share prices up to challenge the previous swing high.