So what went on in the previous week? (week 35)
Price action and trading volume was very subdued last week, due to a combination of minimal first tier news and many traders enjoying the final days of summer vacation.
Whatever price movement occurred was attributable to one of the following:
- Speculation about whether US Fed Chairman Ben Bernanke would offer new clues about whether new stimulus was coming, (and if so, when and how much) in his speech Friday at the annual economic summit in Jackson Hole.
- Speculation about whether Draghi would offer new clues about new steps to ease the EU debt crisis, particularly for Spain and Italy, at the ECB monthly meeting on September 6th.
Speculation about the Bernanke speech was the clear dominant price driver last week.
While he said nothing new, his reaffirmation to take action if needed was enough to spark a mild rally in the US session.