It has been two weeks since the partial federal government shutdown began and the Federal debt limit is likely to be reached in mere days, but this has not hampered the progress of the Russell 2000 and NASDAQ 100 as both closed at new highs today. This is an encouraging sign as the market is on the verge of breaking out. However, this will also the second time the market has come this far. The last time was at the start of October, but that break out attempt failed as DJIA and S&P 500 did not make new highs.
Based upon today’s close, DJIA needs to gain 375.69 point to reach a new high. S&P 500, with a greater technology weighting, needs to gain just 15.39 points. The good news is DJIA and S&P 500 have the most favorable odds of achieving further gains tomorrow as Tuesdays in 2013 have been rather consistently profitable.