The folks in Washington continuing to try and arrive at some conclusion how the debt ceiling issues should be resolved. Currently the powers to be are scrambling to finalize a debt deal. The futures market will open soon as well as foreign markets. Until this deal is done the uncertainty has and will weigh on the markets. Once a deal is done a relief rally is likely to ensue. Once the deal is done the market will focus more if the economic slowdown continues.

If a debt deal gets done and the markets do encounter a relief rally will it be a rally to sell into or a rally to buy for the next intermediate bullish cycle?

Many traders, investors and Institutions follow the 50 and 200 day moving averages. The SP500 tested its 200MA Friday, while the DOW and NASDAQ are very near its 200 MA levels.