Politics in Washington trumped the economic news on Wall street this past week. Stocks were pushed down due to worries about government shutdown on October 1 and the looming showdown on debt ceiling fight. S&P 500 index closed at 1691, down 1.06%, Dow Jones Industrial Average lost 1.25%, while Nasdaq composite increased 0.18% for the week.
A divergence can be observed in the weekly chart and the daily chart of S&P 500 index. In the weekly chart, the index is still trending up with high momentum, while in the daily chart the index has lost its momentum and heading toward 50 day MA. It is going to be very interesting in the next couple weeks to see whether the short term correction will drag down the intermediate term trend or the intermediate term uptrend will pull the short term snag back up.
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| Weekly chart of S&P 500 index |
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| Daily chart of S&P 500 index |
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