It should be an interesting week ahead. Once the debt ceiling issue comes to a conclusion it will be interesting to see how the market reacts. It is possible that the markets could rally once a decision is made. Right now, the price action in the indexes (IWM, QQQ, SPY) looks pretty weak and I am not seeing any signs of a rally yet. The QQQ has been holding up a little better.
In my opinion, we still do not have enough information to make a good swing trade in either direction. I have a feeling it could be a challenging news driven week ahead. I think that SPY needs to break above 132 (see figure 1) at a minimum, before I might consider swing trade opportunities. If I trade it will be with smaller than normal position size.
Figure 1.
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