Stock market continues rally with momentum intact
U.S. equity markets are extending the recent rally, with price action showing sustained upside momentum across major indices. Buying interest remains consistent, and recent gains have not been met with meaningful profit-taking, suggesting that investors are still comfortable maintaining risk exposure. While geopolitical developments and macro headlines remain in the background, market behavior indicates that these factors are being absorbed rather than challenged, allowing the prevailing trend to persist.
Despite the situation, traders will stay careful while holding long positions, as pullback could happen anytime.
Dow Jones Industrial Average (INDU)
DJIA index continues to extend higher after printing fresh record highs, with the index now firmly in expansion territory. There are no clear signs of exhaustion at this stage, and pullbacks remain limited and corrective in nature. On the upside, the 127.2% Fibonacci extension at 49,745 is the first technical target in focus. A sustained move beyond this level would shift attention toward the psychological 50,000 handle, which stands out as a major reference point for both momentum traders and profit management. A clean break and hold above 50,000 would open the path toward the next expansion level near the 161.8% Fibonacci extension at 50,838.
If a bearish correction happen, then the broken high at 48,886 is the support level to watch.
PepsiCo, Inc (PEP)
PEP is trading near the lower boundary of its triangle consolidation, placing price at a key decision area and offering a favorable risk-to-reward setup for long positions. However, there is a price gap below the current level. If price continues lower, a more conservative approach would be to wait for the gap to be filled before looking for long entries. In that scenario, traders will typically reassess price behavior near the gap fill area for signs of stabilization. For direct long setups, stop orders are commonly placed below the triangle structure or the most recent swing low.