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Stock Market Direction For Thursday, September 15, 2011

|Includes: QQQ, SMH, SOX, SPDR S&P 500 Trust ETF (SPY)

Stock market direction is neutral and has been active 4 trading sessions.

Comments: for the third session in four the S&P 500 and Nasdaq Composite closed near session highs gaining at least 1.3%.  In addition, both indexes closed above the areas I mentioned in last nights post 1,199-1,204 for the S&P 500 and 2,580 for the Nasdaq Composite.  The support and resistance levels moved up for the S&P 500.  Support is now 1,204 up from 1,178 and resistance 1,217 from 1,204.  The next resistance level for the Nasdaq Composite is its 50 day moving average of 2,612.  It will be interesting to see if the Nasdaq can rise above its 50 day moving average but it wouldn't surprise me to see it spend some time backfilling and digesting the recent gains.  One negative thing about today's session was the stocks I follow with strong fundamentals didn't perform well and actually finished lower on low volume.  Not the type of action you want to see and the reason why IMO the stock market direction remains in neutral territory.  FYI-tomorrow is an options expiration day.