This whole week's action is likely to be a giant exercise in holding our collective breath. Later this week we get speeches from the two most consequential people in the world right now - the Jackson Hole address from Benjamin Bernanke and an address from the ECB's Mario Draghi.
Bernanke famously signaled QE 2 at the 2010 Jackson Hole speech and the markets direly want to see a repeat performance this year. I know that sounds silly with the major indices within Snooking distances of four year highs, but trust me on this. A lot of the year's gains could be washed away like a child's sand castle very quickly should the bratty traders decide to use the S&P futures market as the tool of their temper tantrum over a "disappointing" slant to his commentary. On the Euro side, we want to hear a renewed commitment that the ECB will continue its metamorphosis into more of a Federal Reserve-like body, complete with full bailout authority.
Is QE 3 on the horizon?
Will the market get another shot of that junk, the junk it so desperately needs and craves?
This will be the focal point into Labor Day weekend, the central planners are in the driver's seat for the moment.