The Weekly Report for November 24th - November 28th, 2008

November 23, 2008- Market Summary
In our last report, we mentioned that the markets were in an interesting position from a technical analysis standpoint. We noted that the major indexes closed near their October lows, which left many traders questioning whether a short-term bottom had formed. As you can see from the charts below, the October lows were unable to prop up the financial markets and, as a result, we saw indexes such as the S&P 500 reach its lowest level since 1997. The Dow rallied 500 points on Friday on news that Barack Obama is expected to make two key cabinet posts on Monday. However, this rally wasn't enough to prevent the Dow from finishing the week lower. Current levels are below the October low and many active traders see this as a signal of a continued downtrend. The increased level of volatility that has been present in the markets, combined with weakening fundamental data, makes it extremely dangerous for anyone to predict how long buying pressure will last. The safest bet is probably to remain on the sidelines until things settle down.

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