Dow about to rally
With just about everyone assuming the US government will be shutting down – and the Dow having declined 600 pips off the high in anticipation – I believe the stage is set for a big rally in a ‘sell the rumour, but the news’ effect (see Weekly Wrap).
But the Nasdaq remains well bid and shows no signs of topping (yet). Even if the dreaded shutdown occurs, I believe any negative effects have been discounted already.
Nice tramline break – and the gap above needs filling! First target is the 15,250 area, but if we get a ‘surprise’ deal in Congress, all bets are off for the upside.
I am now long.