Morning Blog 10/9/2013

Plenty of news this morning but no resolution in Washington. Most folks have heard the basic stories but the charts are what has my attention. Yesterday the SPY broke the long term uptrend I have blogged about several time. This morning may be a gift to get in on the put side as more technical damage to the market is expected. We should get a slight rise in the market this morning but that will soon be overwhelmed with selling pressure to force Washington to come to the table. Listening on Bloomberg this morning a Constitutional scholar pointed out the fact that if Republicans do not raise the debt limit by the 17^th they are in clear violation of the 14^th Constitutional amendment at that point the President does have the authority to increase the debt limit and override the Republicans as his charge to protect the Constitution of the United States. This, along with other factors lead me to believe we will reach a deal during our Core options expiration week that begins Friday. Today’s chart features the SPY long term uptrend line that was broken.