The U.S. government commenced its latest shutdown at the beginning of the month over funding disagreement. The issue remained unresolved by the end of the week.
Stocks have remained dislocated. Nasdaq indexes, SP400 midcap and Russell 2000 smallcap made new highs while senior indexes broke their September retrace lows, filling SP500's last remaining gap since the August low.
In Monthly Outlook Update (9/27/13), we discussed four potential long term structures of the rally since 2009 in SP500.
At this juncture, those that accommodate an EDT (which will deliver the anticipated overthrow) look particularly appealing. Chart 2 and Chart 3 illustrate how a near term EDT fits into both bullish and bearish counts.