Stock market turned bullish on government re-opening expectation

The end of longest government shutdown looks near as Senate looking to pass a bill on Monday. Traders getting optimistic and drive the stock market upward. At the current time, it seems the bullish sentiment could last for a while, especially when the shutdown ended. After the re-opening, traders will focus on economic data releases, which has been paused since the shutdown. It will give better picture on what will happen in next month FOMC meeting.

Dow Jones Industrial Average (INDU)

DJIA index cleared the liquidity below the 47,000 handle and turned higher above it now. The index might attempt to maintain the position above the 47,000 level and resume the bullish trend. Will the index immediately continue the bullish trend to reach new record high? Alternatively, will it turn lower again and resume the bearish correction toward the trend line?

Pepsico, Inc (PEP)

PEP share prices respected the daily SMA 200 and bounce higher from the level. However, in the latest bullish attempt to new higher swing high printed. Fortunately, the share prices also avoided to print lower swing low. At the current time, we could see a triangle pattern formed and traders could use it to take positions. As the share prices return above the daily SMA 200, we maintain bullish view and see the current triangle consolidation is preparation for bullish breakout.

However, if the share prices breakout lower, print new lower swing low without major bluish reversal, then the trend might turn bearish again.