The Senate and the Republicans did not reach the deal; thus, government is slowly shutting down its services. The last time the government faced shut down was 17 years ago. The Dow Jones futures did not drop after the fact that the government faces shut down. It maintains at around +26 points area.
Dow Jones Industrial definitely has a resistance level at around 15,550. By looking at the chart, it seems like it is forming a head-and-shoulder pattern with the target at 14,000. The short-term trend is currently down whereas the long-term trend remains strong.
There is a high probability that the market will drop more due to other issues such as the debt ceiling and spending cuts. Investors should also be cautious for the Fed's tapering. Overall, the markets are not healthy. There are still many uncertainties and most of the uncertainties are negatives.
We shall watch the effects of government shutdown and how it affects the stock markets.