According to Market Oracle:
In holiday shortened week, there won’t be much to gleam from market action in the coming week.
Over the past couple of months, Monday’s have been kind to the bulls. Wednesday will be light as traders ready for Turkey Day on Thursday. Friday is another snooze fest that seems to go to the bulls –why spoil a great American holiday?
Will this week be another repeat of the last two where the best gains are on Monday and then the market struggled all week long? It seems plausible. Stock sponsorship (i.e., volume) has been pathetic, and I can’t see that improving this week either.
Over the longer term or beyond next week we say what we said last week:
“The major equity indices are in a topping process. This implies a trading range at best. There is risk of a down draft as markets “fueled” by the proverbial “liquidity” are prone to quick sell offs. The outlier trade is a market blow off or a spike in prices, and I do not rule this possibility out because of the ongoing downtrend in the Dollar Index. It is possible but it is not the high odds play. This is not the market environment that will take you from here to there.”
Tags: stock market volatility