Let $X$ be a complex Banach space, and let $D \subset \mathbb{C}$ be a domain. Let $\mathcal{L}(X)$ denote the Banach space of bounded linear transformations $X \to X$.
The Analytic Fredholm Theorem is given as follows:
Let $A: D \to \mathcal{L}(X)$ be an operator-valued analytic function such that $A(z)$ is a compact operator for each $z \in D$. Then either:
$(I - A(z))^{-1}$ does not exist for any $z \in D$, or
$(I - A(z))^{-1}$ exists for all $z \in D \setminus S$, where $S$ is a discrete subset of $D$.
This is Theorem 8.26 from Inverse Acoustic and Electromagnetic Scattering Theory by Colton and Kress. To prove this theorem, the authors first establish that, for each $z_0 \in D$, there exists a ball $B_{r_{z_0}}(z_0) \subset D$ within which either 1. or 2. holds. Then, the authors claim that the theorem itself follows by a simple connectedness argument.
I am having trouble understanding how the connectedness argument should go.
Here's what I have so far. To prove the full theorem, assuming we know the local version, let's assume that 1. does not hold. Then we want to show that
$$ W =\{ z \in D | (I- A(z))^{-1} \text{ does not exist}\}$$
is discrete. If we fix $z_0 \in W$, then we know that in $B_{r_{z_0}}(z_0)$, either 1. or 2. holds. If we can rule out 1., we are done. But I'm not sure how to continue from here. I haven't really brought in the connectedness property of $D$, so I think I am missing a substantial step.
Hints or solutions are greatly appreciated.
The argument is
What the properties are is not relevant for the connectedness argument, they just need to be incompatible. The argument is completed by defining
$$A = \{ z \in D : \text{property 1 holds for all } w \text{ in a neighbourhood of} z\}$$
and
$$B = \{ z \in D : \text{property 2 holds for all } w \text{ in a neighbourhood of} z\}.$$
By construction, the sets $A$ and $B$ are open. By assumption, $D = A \cup B$. And since for no point both properties can hold together, we have $A\cap B = \varnothing$. Then the connectedness of $D$ implies that $A = \varnothing$ (hence $D = B$) or $B = \varnothing$ (hence $D = A$).
Here, property 1 is
And property 2 is