The Weekly Report for February 18th - February 22nd, 2008

February 17, 2008- Market Summary

Markets ended the week mixed thanks to lackluster economic announcements and disheartening comments made by Ben Bernanke on Thursday. For the second consecutive week, all attempts at rallying higher succumbed to traders' willingness to lighten their positions in case of an upcoming recession. In our last report, we mentioned that the majority of the indexes were testing the resistance of their respective November lows. These levels have been the main driver preventing a move higher. We also noted that the nearby resistance was technically significant because bearish traders tend to look at entering positions near the horizontal trendlines because of the favorable risk/reward ratio.

The predicted bounce off the resistance levels is technically significant because it illustrates that the bears are in control of the momentum. Also, we couldn't help but notice that Bernanke's comments about lower interest rates in the future did not have the same effect as earlier in the year. We expect that the selling pressure will continue and that high levels of volatility will remain for the rest 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.