Stock futures flat after strong weekly start

The stock market might finally break through the bearish pressure since the beginning of August. It will attempt to erase all of the losses and close near the opening level. However, the bearish situation might persist in September as traders await the announcement from the Fed. Despite the situation, we think the end of the bearish trend is near and traders will continue accumulating long positions while preparing for the upcoming bullish trend. In today’s trading, traders will observe the release of ADP data which could give clues on the Friday NFP data release.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index managed to bounce from the daily SMA 100 and currently has surpassed the previous week’s high. The index might continue building more bullish pressure to target a new higher high. Under the current situation, traders will wait for a bearish correction again toward the daily SMA 200 and continue accumulating long positions in the stock as planned.

Darden Restaurants Inc (DRI)

DRI share price bearish correction has reached the level near the daily SMA 200. We might see the share prices consolidating near the level while waiting for a bounce reaction. Traders will use the chance to enter long positions on bounce reactions. We think the share price bullish trend could continue for the medium-long term. However, if the share prices close below the daily SMA 200 and for a lower swing low then the trend might turn bearish.