Image Source: Pixabay

Markets are consolidating after the first sell-off at the end of September ahead of the US Labor holiday. Stocks have stabilized a bit, but they are not really resuming higher, as many investors remain on the sidelines waiting for tomorrow’s US NFP report. This will be key data for new positioning in investor portfolios, especially since Powell hinted they could be looking to cut rates. If that view is confirmed and jobs data comes in weak, then after some initial volatility, we could see stabilization.

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NVDA Daily Chart

Last week I looked at Nvidia (NVDA) and noted that the stock was in an ongoing correction, with the question being whether it would get deeper. Earnings were positive but some expected a bit stronger, so consolidation is still ongoing. What we see now looks like wave four, with price currently testing the 170 support. The deeper and more important level is around 150, which also lines up with the 38.2% retracement and the previous highs near 153. In my opinion, the 150–170 zone is quite attractive for a potential rebound.

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