Portions of the government are scheduled to shutdown at midnight due to the lack of agreement between parties in Washington. While this will eventually be resolved it will likely cause some big swings in the markets. This morning the S&P gapped lower by -13 points. It sold off to -20 points lower at the morning low before bouncing +10 points to 1677 as of this writing.
A resolution on the budget will likely cause a pop in the market but the real battle is the upcoming debt ceiling in October. I feel there will be a better buying opportunity and a better selling opportunity. For now we need to see how this shakes out and remain in cash until we have better clarity. Initial resistance levels in the S&P (ESZ3) December contract are between 1680 and 1683 and all the way up to 1700+.
These issues are going to affect all markets so no signals for today. Any trades will be published as Alerts and are likely to be short-term in nature.