Bearish Reaction to Economic Data

Are rate cut hopes diminishing further after payroll data is showing a resilient economy? Some volatility in the major indices occurred once the data was released.

If the economy continues to show strength, then the Fed will not be cutting interest rates in March.

Yields shot up after the data release. This will bring up the dollar and put pressure on equities.

It looks like this selling is happening near a short-term technical level. The negative catalyst in the economic data appears to be causing a rejection of resistance in the short-term price channel SPY has been traveling within for several weeks.

Is this data that bad? Will the market sell off substantially? Or is this just a regular dip before the market takes off again?