Upcoming Jobs Report May Pose Market's Greatest Challenge Since July

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S&P 500,NVIDIA Corporation,US Dollar Index Futures

Market Overview Analysis by Michael Kramer covering: USD/CAD, S&P 500, NVIDIA Corporation, US Dollar Index Futures. Read Michael Kramer's latest article on Investing.com

Stocks rallied to close out the last week of August. The $6.5 billion buy imbalance, which overwhelmed the market in an illiquid trading session ahead of the three-day weekend, could have had something to do with it.

Additionally, this week’s report will likely influence whether the Fed cuts rates by 25 or 50 basis points at the September meeting. If the VIX reaches the 20 range by Thursday, it might indicate that the market rallies on Friday, assuming the data isn’t a complete disaster.is higher than expected, I would expect the VIX 1-Day to remain elevated, and we could see a repeat of the market reaction to the August 2nd report.

Over the past few months, SOFR volume and reserve balances have declined, while margin balance growth has stalled. These factors tend to impact the S&P 500 over time directly. Remember, currencies are always relative, and it’s entirely possible to get bad U.S. data and still see the dollar strengthen if the outlook in Canada is worse.) will give us a clue as to what happens next. The stock moved down to support at $118.25 and consolidated there for most of Friday.Additionally, at the start of the week, the gamma level at $120 will serve as resistance and could cap any rally in the stock.

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