Stock market rally on possible trade truce

Last week, the stock market shaken a bit by the announcement of tariff but quickly regain the loss. This week, traders are hopeful that a trade truce will be reached between U.S-China. Moreover, we are getting near to the FOMC meeting. If the Fed proceed with rate-cut and stay dovish, then we might see further upward movement. However, another shakeout could happen if the trade negotiation between U.S-China turn sour.

Dow Jones Industrial Average (INDU)

DJIA index gapped up to new recorrd high which is continuing the bullish trend. The situation is bullish before this week FOMC meeting, it might extend to the upside but traders will stay cautious. On the upside, 48,000 is the level to watch as first target. On the lower side, 47,000 is the new nearest support level.

Lockheed Martin Corporation (LMT)

LMT share prices has broken from the $420.00 – $490.00 range and retraced toward it. The retracement will test the broken area and might extend to the daily SMA 200. Traders could use the current moment to accumulate long positions in the stock with stop order below $440.00.