The last US gov shutdown was in Oct 2013.

Gov Shutdown in 2013

  • started on 01 Oct.
  • lasted for 16 days.
  • Market weakness in initial 7 days.
  • Market recovery started at the sight of a possible resolution.

 

Observation for last week (15 -19 Jan 2018)

  • Strong move on high hopes for budget extension and no Gov shutdown.
  • Positive Earnings from the companies.

 

Observation for Coming Week (22-26 Jan 2018)

  • Unexpected shutdown of the US gov for 2018.
  • Shutdown is expected to be short-lived.
  • More weakness to be seen in the market if the shutdown of the US gov drags on.
  • As long as SPX remains above $2,700, the Bulls are still in the market. Keep a tight stop at $2,760. Dips are to be purchased once resolution of the budget is seen.