NEW YORK ( TheStreet) -- All three major indices are higher heading into the weekend, with the hopes of an agreement in Washington.

Peter Cardillo, chief market economist at Rockwell Global Capital, told TheStreet's Debra Borchardt the markets will rally on a resolution.

He added that he's surprised the shutdown has even lasted for this long. While a weekend compromise isn't a guarantee, he'd expect one by sometime next week.

With President Obama canceling his trip to Asia and House Speaker John Boehner vowing not to let the U.S. default on its obligations, it suggests a resolution may be close, Cardillo said.

The stock market is confirming this theory since the S&P 500 has continued to hold the 1,675 level -- a bullish response -- considering all the current political headwinds.

Cardillo argued that if the markets were indeed worried about the debt ceiling debate and current government shutdown, we would certainly not be holding these levels.

He concluded that the U.S. will not default on its obligations and this bullish price action likely means markets are gearing up for a strong rally when the government finally does announce a resolution.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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