The U.S. dollar index in Monday trading came off of its best weekly performance of the year, though holding above the 94 level.
Matt Maley, equity strategist at Miller Tabak, took note on Friday of the dollar index breaking above that level of resistance "in quite a significant way."
The recent relative strength in the U.S. dollar could cause pain for emerging market equities, which have thrived this year against a weak dollar, Maley said Friday on CNBC's "Trading Nation."
On Monday, the yield on the U.S. 10-year Treasury pulled back from seven-month highs reached last week. The move came amid reports that President Donald Trump would select a relatively hawkish Fed chair.
A move higher in rates would prove beneficial for rate-sensitive stocks like banks and other financials, Maley said.
"Technology stocks should continue to be a good leadership group, but we might see some of the other groups shift as we've seen a nice rally in the bank stocks, and the energy stocks, as well," he said.
"Therefore, I think investors are going to need to stay nimble as we move through the rest of the year."