There are additional headwinds which can be considered more fundamental than technical. The FED’s QE 3 ends in October. The end of QE 1 and QE 2 coincided with market declines of 17% and 22% respectively. Europe has renewed deflationary pressures, as their inflation rate is currently 0.3%. The ECB and FED both target 2% inflation. The recent uptrend to new highs has occurred with some of the lowest volume this year. Traders are likely to start returning next week, as Labor Day marks the end of summer in most areas. Geopolitical events continue to flare up: ISIS in Iraq and Syria, Russia in the Ukraine. Both have the potential to create volatile markets, which usually occurs during steep corrections. http://caldaro.wordpress.com/