While the media is doing an excellent job of blaming the markets action of the past few days on the debt the ceiling debate…is that really the reason?
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Actually the 500 index has done nothing more the past few days than it has done the past few months! It remains inside of a narrow range (5%) since February.
From a technical analysis point of view, resistance that has been in place years before the debt ceiling debate ever was discussed, is more likely having an impact on the markets!
In the past is has paid to lower risk exposure at overhead resistance and so far that has been the case again for the past months!