Stock Market & Political News Analysis

S&P 500 was trying to rebound from 1670 at the beginning (8 Oct 2013)
But it failed after economic data showed a huge drop in Economic Optimism / Consumer Confidence
S&P 500 then broke below important support @ 1670
After failing to rebound, S&P 500 continued to drop & closed @ 1655.45
S&P 500 is severely oversold & will try to rebound but should continue to drop more if there's no sign of resolution to end the US government shutdown & raise the debt limit

President Obama said he's prepared to talk about anything, but only after the shutdown & debt limit is resolved
This shows that he's not really open to negotiations during the shutdown, especially over Obamacare
Obama also issued a statement that he would veto & reject the approval of a "supercommittee" to negotiate US spending & deficit
Boehner said in private that he's not going to bring up a clean CR & "there's no way the president holds firm"
"I don’t know how the debt limit will be addressed, but it won’t be by Republican capitulation"
President Obama said: "If that's the theory... it's not going to work"

This confirms our theory that "They're using the government shutdown & debt limit issue to pressure each other into losing their political battle but both sides have not backed down since then"
It seems like their game plan is to stubbornly hold firm & continue waiting for the other party to give in instead of properly trying to resolve the situation, then blame the other side when a shutdown happens or if US fails to pay its bills on time
Although both sides said in public that they wouldn't let the government shutdown & they're willing to negotiate, results showed otherwise
Both parties are prioritizing their political agendas over the economy & people of America
Neither are willing to be the better man & save US from this fiscal crisis

Therefore the shutdown & debt limit issue is unlikely to be resolved soon unless they change their mindset
Look to sell S&P 500 tomorrow if the market fails to rebound & continues to drop (9 Oct 2013)