The Weekly Report for February 4th - February 8th, 2008

February 3, 2008- Market Summary
In our last report, we mentioned that volatility spiked to multi-year highs on the heels of global market weakness. As you can see from the charts, the bulls were able to erase some of January's losses, but many of the indexes are quickly approaching significant levels of resistance. Notice how the majority of the indexes are testing the resistance of their respective November lows. This is technically significant because bearish traders will likely look at entering positions near the horizontal trendline, which offers an interesting risk/reward ratio. Next week's price action could be significant because it is likely to set the tone for the remainder of the quarter.

Join me in Investopedia's FREE stock picking community. Check out what other traders are watching and post your own takes on where you think your favorite stocks are headed. Click here to learn more!

Have a Great Day! Casey Murphy Senior Analyst, ChartAdvisor.com DISCLAIMER ChartAdvisor is not a registered Investment Adviser or a Broker/Dealer. The trading of securities may not be suitable for all potential users of the Service. You should be aware of the risks inherent in the stock market. Past performance does not guarantee or imply future success. You cannot assume that profits or gains will be realized. The purchase of securities discussed by the Service may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities, or making any investment decisions. You assume the entire cost and risk of any investing and/or trading you choose to undertake.