Nick Nasad
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S&P500 Jumps on Washington Rumor-Mill

Well, the rumor mill is churning in Washington as Republicans seem to have read the polling and realize they are losing the PR battle. So, Boehner is pitching a 6-week increase in the debt ceiling with no string attached, that will mean the US avoids a technical default.

The news gave US equities a jolt, and its a bit late now considering the move we have seen, still interesting to note that we had a completion of an inverse head and shoulders pattern and a projected move from that H&S. As we can see, we now test the 200-moving average in the 1-hr time-frame, and if zoomed out to the 4-hr, a test of a cluster of MA's as well.

The question now is will this pitch by Boehner work? Or will the House Republicans reject it. If they do, its going to be sell-off city, as the market will have been pumped, and be ready for a big dump afterwards. So, as much as we would love to avoid it, news from Washington is likely to dominate today's trading.

- Nick