Last week, the markets seemed to lift themselves out of their doldrums. Positive reactions to some certainty from the Fed, with regards to rate increases. managed to lift stocks higher and higher throughout the week. This week could see more of the same; albeit, with a heftier dose of volatility.
The volatility won’t be caused by specific data points, but by low trading volumes. With the market closed on Thursday for Thanksgiving, many traders and investors will be taking much needed time off. This could see trading volumes start to dry up as early as Tuesday. And even though the market is open on Friday, we’ll most likely see zero volume again.
This will be a problem as there is actually a decent amount of earnings and data being released this week—perhaps, most importantly, the domestic GDP numbers.