----- By Michael and George (Please read the disclaimer at the end!)

Tradetrek is suspending Market Outlook. This edition of Market Outlook represents the last delivery of the column. Tradetrek will let you know should we reinstate is feature.

The major US stock Indexes ended up for the week. The Dow Jones Industrial average was up at 168.14 points, or 1.79 percent, to 9,545.17. The NASDAQ composite rose 97.65 points, or 5.84 percent, to 1,768.96. The Standard & Poor's 500 was up 31.13 points, or 2.90 percent, to 1,104.61. Most investors have not been convinced of an economic turnaround despite recent reports showing underlying economic strength. Many are still cautious, leaving money on the sidelines. The GDP, consumer confidence and employment report number will provide evidence to determine the direction of the stock market.

The technical picture in the broad market is looking mixed. During the past five months, the S&P index has struggled to close above its 50-day moving average and actually continued to back off from this level. If the index does not manage to break and stay above its 50-day moving average, it is likely to have some downside going forward. The S&P is expected to trade at current level with resistance at 1,100.

The Dow closed up for the week. However, the Dow has consistently traded below it 50-day moving average over the past five months. The Dow tried to break 9,500 during the week, but failed to overcome this level. It appears that the 50-day moving average level is unsustainable for the Dow. Due to sector rotations with mixed earnings reports, the Dow may continue to consolidate. Any negative news could put downward pressure on the Dow, pushing it below 9,300, sending it on its way down to 9,000.

The technical indicators for NASDAQ are positively mixed. The NASDAQ index has tried to stay above its 50-day moving average for the week. Despite these attempts, the index is likely to experience profit-taking going forward as investors worry that the economy may be getting worse. It should be noted that investors realize the Fed might cut rates even further to prevent the economy from heading into a recession. Therefore, this pushes the NASDAQ to have a near-term support level at 1,650 with a resistant level at 1,800.

Figure 1. DOW JONES Industrials

Figure 2. Standard & Poor's 500

Figure 3. NASDAQ Composite

DISCLAIMER:
The reader is advised to use his/her own discretion in taking any actions based on the above information. The author and any related parties do not guarantee the market performance and therefore shall NOT be held responsible for any consequences resulting from this note. The author and the related parties have profited based on the previous notes. However, past results by no means guarantee future outcomes.