The government re-opened on Monday after lawmakers came up with a compromise measure, sending the indexes rocketing higher. But it wasn’t like the market was all that concerned with the two-day government shutdown when it opened up on Monday morning. The indexes came off a little bit, but then stabilized, moving higher once it was apparent that a deal to re-open the government was going to happen. Meanwhile, all of 12% of the government had in fact shut down, so the shutdown itself was a bit exaggerated to begin with.
The NASDAQ Composite Index was up 12 out of 15 days in a row, and this morning was working on another up day before things reversed to the downside. By the close, the index logged a distribution off the peak. Given how extended the index was already, this is not necessarily of great concern to me. The index is entitled to a pullback, as I see it, and as long as it holds above the 10-dma, the trend remains quite strong.
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