NEW YORK ( TheStreet) -- Equity markets are essentially unchanged as the debt ceiling deadline draws closer. TheStreet's Debra Borchardt spoke to Mark Newton, chief market technician at Greywolf Equities, about the recent price action.
Despite the lack of resolution in Washington, the stock market has risen over the past several trading sessions. Newton called this a rather bullish sign, even though there are some obvious red flags.
He added that the market tends to be forward-looking and that he's optimistic some type of deal will be done in time.
While equities are heading into a seasonally strong period of the year (November and December), the weakening weekly momentum is concerning, he said.This is evident when small- and mid-cap indices have been reaching new highs, while large-cap indices have seen fewer individual stocks within it making new highs. Newton suggested a near-term selloff would be a buying opportunity ahead of the November-to-December time period, but expressed concern for 2014. He cited a deceleration in earnings, massive worldwide debt issues and worries over politics as headwinds going forward. As for now, Newton concluded that the market seems bullish and the upward trend has yet to be broken. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell