Stocks rallied in late trading on light volume after being sharply lower during most of the day on concerns about Europe's ability to contain a credit crisis, despite agreeing to bailout Ireland. Although a catalyst is unclear, the move may have been technical as the S&P 500 hit the bottom range of its 50-day moving average. The rally was macro driven without a lot of follow through in a single stock, but more a case of selling pressure drying up rather than a lot of "real money" buying showing up in the afternoon.

The Dow Jones Industrial Average ended down 39.51 points, or 0.36%, to close at 11,052. The S&P 500 fell 1.64 points, or 0.14%, to close at 1187, and the Nasdaq was down 9.34 points, or 1.14%, to finish at 2525. Telecom, consumer discretionary and technology sectors led the S&P 500 lower, while financials and materials sectors rose.

Commodities finished the day mixed with gold, silver and crude all rallying in the afternoon to finish near their highs. Copper also strengthened into the close to end in positive territory. Meanwhile, natural gas sold off earlier due to some weather forecasts to end the day down. The U.S. dollar finished just off its highs, while treasuries gained in the afternoon to end flattish.

The CBOE Volatility IndexI:VIX closed down $0.61, at $21.53, with calls active on volume of 117,000 contracts compared to put volume of 57,000 contracts. Volatility decreased during the session as traders positioned themselves for a market rally and for the VIX to move lower.

The SPDR S&P 500 ETF (SPY) - Get Report closed up $0.36, at $119.16. The increase in trading of the December 116 put options shows some investors anticipate that the SPY will decrease into December expiration. December at-the-money (ATM) 119 month put option implied volatility is at 23, December monthly is at 20 above a level of 18 from November 26 and January is at 21, below its 26-week average of 23.

The PowerShares QQQ Trust (QQQQ) closed down $0.04, at $52.73, on put volume of 224,000 contracts compared to 161,000 call contracts. December put option implied volatility is at 21 and January is at 23, near its 26-week average of 24.

The most important catalysts for the remainder of the week will be on the economic front. We will get the November manufacturing PMI/ISM readings (China hits late Tuesday night and the U.S. comes Wednesday morning) as well as the U.S. jobs report on Friday. Consensus is looking for 143,000 in total non-farm adds. The Beige Book will be published on Wednesday and also is in focus.

The corporate calendar will be relatively quiet, with most traders looking at Black Friday traffic and forward-looking thoughts to the remainder of the holiday season. We will get auto sales on Wednesday and same-store sales on Thursday. ALTR and LSTR both will be publishing mid-quarter updates and there are still a few more October-end earnings including: ARO, AVGO, OVTI, SNPS, TOL are among them. On the political front, the White House will host a summit on Tuesday between President Obama and the new GOP leadership. The big topic will be the fate of the Bush tax cuts, as far as the market is concerned.

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