The Weekly Report For January 12th - January 16th, 2008

January 11, 2008- Market Summary
The major indexes, such as the S&P 500, have rebounded nicely off their recent lows. However, as we've been mentioning in our previous reports, each of the indexes has retraced toward influential resistance levels. The nearby trendlines have prevented the bulls from continuing the recent rally. These levels will be watched carefully by active traders as we head into earnings season because they will likey prevent a move higher as many traders will choose to wait on the sidelines until earnings season is out of the way. One chart of specific interest this week is the Nasdaq because it is trading within a rising wedge formation. This chart pattern is commonly found in a downtrend and often signals a period of consolidation before a breakdown triggers a resumption of the selling pressure.

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