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Stock Market Direction For Friday, September 16, 2011

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

Stock market direction is neutral and has been active 5 trading sessions.

Comments: stocks finished the week out higher with the S&P 500 and Nasdaq Composite up 0.6% each.  The Nasdaq Composite closed above its 50 day moving average for the first time since the beginning of August.  The S&P 500 is within 13 points of its 50 day moving average.  The action today moved the support and resistance levels higher for the Nasdaq Composite to 2,616 and 2,627, respectively.  However, today's session did not change the support and resistance for the S&P 500.  Support remains at 1,204 and resistance 1,217 for the S&P 500.  It would be nice to see some backfilling action early next week to make this weeks gains sustainable with the major indexes rising each of the last five trading sessions.  The one thing I did not like in today's session for the second day in a row was the action in the strong fundamentals I follow.  They finished flat overall on low volume lagging the overall market.  This is keeping in my opinion the stock market direction in neutral territory.  However, if riding the recent uptrend it should be done cautiously with the FED meeting coming up on Thursday.