We were standing on the balcony of our house in Ketchikan, Alaska. It's a clear night and my sister and I noticed an odd formation of multi-colored lights hovering over the southeast area of town. We noticed it at least 45 minutes ago and we've been observing it for about 45 minutes with binoculars.It's hard to determine the exact shape but it appears to be somewhat spherical, not making any apparent forward or backward progress, and it's maintaining a fairly steady altitude.We haven't seen anything like this before. Sometimes it appears steady then it zigzags erractically. The colors range from red, blue, yellow, white, purple, green.We haven't lost sight of the object. It appears to be a little bit smaller right now but it's still there and visible with the naked eye.Has anyone else reported this? Does anyone have any idea what it might be? We come from a family of pilots and this is defintetly odd.