The financial market took a bit of a beating on Tuesday as it is becoming more apparent that the current government shutdown is going to drag on longer than anticipated. From the Republican’s perspective it is in their best interest to combine the debt ceiling, and the continuing resolution to fund the government, into one debate. No matter what the outcome of the negotiations both sides are likely to disappoint their constituents so it is better to only disappoint them once rather than twice in short succession.
However, the uncertainty, and the continuing threats of default, have finally taken their toll on the financial markets with the markets falling to critical support. The chart below is a daily chart of the S&P 500 index
“And Now the Rest of the Story – “Market Update: Stocks Stumble To Support