So, putting the political problems aside let's check what the technicals are telling us. Plotting the DIG SmartPoints on the chart - A proprietary indicator from the developers of ProTradingIndicators.com - we can see that the market does ranges for quite a while between the two extreme bands. Currently the price has just exceeded the middle, yellow band which indicates some sort of a mean price where if the prices were to go to far from that band, they have a tendency to get back to that yellow band. So for now we are in mid zone, trying to reach for the upper red band at around 172.64, this means we are neither overbought or oversold - price trend is neutral.
As for close levels, we will plot the a useful indicator called DIG Break, also form the developers of ProTradingIndicators.com. Essentially what this indicator does is identify key turning points in the underlying asset, and gives the observer a clear view of potential tussle levels between bulls and bears. Also, this indicator can help in identifying trends, whether up or down, just by looking on the sequence of the extreme dots printed on the chart and following a pattern of higher highs and higher lows for an uptrend and lower lows and lower highs for a down trend. Right now, we can clearly see a white dot printed on mid August at 163.00 which offers us a clear . This level is quite important since the next is quite distant, about 8 points below 163. This leaves a large empty space where if prices were to go under 163.00, we could see a further drop to 155.00.
As for the next , we don't have so much choices as we are flirting with all time highs of the market. So the imminent is 171.00 which is the level where the early August high stopped, and where we experienced a false breakout - last high.
The important economic events and announcements for the week are listed below. Of course, the most important event which i not listed is the debt ceiling countdown to this Thursday, October 17.
Oct 16 @ 08:30 AM - CPI (Consumer Price Index).
Oct 17 @ 08:30 AM - Initial Claims.
Oct 17 @ 09:15 AM - Industrial production.
Oct 18 @ 10:00 AM - Leading Indicators.