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Trade idea: Sell S&P on US Govt shutdown
Steve O'hare from First 4 Trading is looking to sell the S&P 500 following the Government shutdown in the US. He says this event "will have a detrimental impact on the economy" and that "this will increase the longer it goes on".
On a technical level, Steve says we have seen a rising wedge formation since June, as well as higher highs and Lower highs in the MACD indicator.
He adds that market sentiment has turned negative over the past couple of weeks which should encourage this downmove.
As a result, he is looking to sell the S&P on a clear break of 1660, to place a stop at 1710 and his targets 1560 and 1500.
Republicans and Democrats on Capitol Hill could not agree on an emergency short-term budget. The midnight deadline passed with no deal and Government agencies started to shut down.
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01:08 minutes
Tags: barack obama, budget, capitol hill, democrats, first 4 trading, investing, macd indicator, markets, obama, profit, republicans, s&p 500, saxo bank, saxo tv, steve o'hare, trade idea, trader, trading, tradingfloor.com, us budget, us economy, us government, us government shutdown, us shutdown