If you have been keeping up to date with the government shutdown and my views on how it will affect the market you are aware that I feel we are in the midst of a buying opportunity. But that is simply my opinion, of course based on research and how the market has reacted in the past.

If you do not want to agree with my view, then I suggest you look at the charts. I have a couple of charts below showing how the market is pulling back to support and at the same time other technical indicators are turning extremely bullish. As I have stated many times, the Charts Do Not Lie. See for yourself below.

The SPDR S&P 500 ETF (SPY) has pulled back 3% from an all-time high and is hitting several support levels. The blue line is the 50-day moving average and the black line is the uptrend price support. The ETF rallied to the support area (grey circle) yesterday on the shutdown headlines and has since began to bounce. At the same time the RSI (lowest blue line) is moving into oversold territory and should bounce back tomorrow creating another buy signal.

The SPDR Materials ETF (XLB) pulled back 4% to the old breakout level (black horizontal line), which is now important support. Also in the area is the 50-day moving average (blue line). The ETF is starting to bounce out of the support area (grey circle). This setup is the classic breakout buy setup I often refer to. Adding to the bullish sentiment is the RSI in oversold territory that will likely move higher tomorrow.

There are many more charts that look like the two above and is just one more reason I feel buying in early October will be a solid strategy heading into the end of the year.