The Weekly Report for November 3rd - November 7th, 2008

November 2, 2008- Market Summary
In our previous reports, we've discussed the underlying economic issues that have been wreaking havoc on stock markets around the world. For the first time in weeks, we saw the readings on the CBOE Volatility Index pullback, which suggests that we could start to see the broad markets stabalize. Taking a look at the charts below, you'll see that the major indexes are still trading within a defined downtrend, illustrated by the diverging moving averages, which are making it extremely difficult to determine how long the buying pressure will last. In the week ahead, traders will look for the election results to be the catalyst that will send the markets higher, but only time will tell if this will be the case. The best bet might be to wait on the sidelines to see if the recent stability will continue.

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