Stock futures were mostly flat before the monthly close

The stock market is on a three-month bullish streak and today’s close might mark the fourth bullish close. There is no major bearish pullback in the stock market yet as traders preparing for the Fed rate cut in September. Traders will stay cautious while sticking with bullish positions. A “Sell on the news” event could happen after the Fed announces interest-rate and triggers a pullback in the index. Despite the situation, traders will continue to use each bearish correction in the stock market as a chance to add more long positions.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index stuck near the record high but having trouble extending the bullish movement. The overall trend is bullish but a bearish correction might happen. If the index trades lower, traders could use it as a chance to add more long stock positions when the index reaches the support level. Today is the last day of August and the index is set to close near the record high.

Kroger Company (KR)

KR share prices managed to bounce from the flip horizontal line as shown on the chart. The share prices currently consolidating inside a triangle pattern and waiting for a breakout. Traders could continue accumulating long positions near the bottom of the triangle or the horizontal line with a stop below the latest swing low. We think the share prices will continue the bullish trend and target a new higher swing high.