Trading signal occurs in iETF model portfolio: Sell EWN, Buy EWP
A little daylight opening in resolving the government shutdown and debt limit issue pulled up the plunging stock prices. S&P 500 index closed at 1703, up 0.75%, Dow Jones Industrial Average gained 1.09%, while Nasdaq composite decreased 0.42% for the week.
Stock prices in the past week seemed to hope for an agreement to be reached to reopen the government and raise the debt ceiling. In the weekly chart of S&P 500 index, The index touch the trend line at 1650 and bounced back forming a "Hammer" candle pattern similar to what happened in the week of June 24. In the daily chart of S&P 500 index, the index is gaining momentum after briefly hitting the short term support at 1640 level. This coming Thursday, October 17, is the deadline for reaching US debt ceiling. Whether a political solution can be reached by that time will greatly affect the market reaction. We shall see if the current price pattern is telling us the right things or not.
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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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