The last week’s correction has gone too fast for this week’s bull market to be resumed with the same speed and record highs. This week is expected to be pretty volatile due to the upcoming Jackson Hole Symposium that will happen this Thursday. The Jackson Hole Symposium is an annual event for the central bankers, where they discuss and announce their plans.

Of course, the most anticipated announcement is about the start of tapering the Fed’s massive Quantitative Easing (QA) program when the inflation is high and kicking in all the economy parts. 

However, according to the bank Goldman Sachs, this announcement will happen not earlier than the November Federal Open Market Committee meeting. So, if everything goes well, they will announce the start of tapering and will agree on 15 billion USD per meeting. 

There are still some doubts that the formal announcement about the start of taping won’t be delayed till December or even 2022. Goldman puts high odds on a delay beyond November because of the downside risk posed by the Covid Delta variant. It’s difficult to say how much of the actual tapering which has been priced in as volatility has returned to equity indices. Considering all this, the official announcement might be bullish and even a small delay in the taper may cause equities to jump high again. 

Another positive side of this is the weakening of the US dollar. The EURUSD pair has failed to drop below its support price of 1.17 which cause a massive falling wedge pattern on the daily chart. This is in fact a strong bullish formation, and it might provide a powerful bullish signal once the pair jumps above 1.18. 

It is expected that volatility will be very elevated on Thursday and Friday which is a sign for the conservative traders to stay out of the market until the Fed's message is clear.