After the sharp drop and incredible market recovery seen in August, the main index, i.e. S&P 500, seems to have entered in consolidation.
Despite the easing of tensions among the involved parts in the conflict of Ukraine, investors remain cautious and concerned, since it is not yet in sight a solution to bring peace to the region.
The referendum of 18th September in Scotland is also motive of attention, where the victory of independence may increase instability in the markets.
We should consider the possibility of a profit taking by investors, as we had a very fast rise since August 8th and these overbought levels may lead to a shrinkage in the short term, which wouldn’t be bad before pointing to new highs.