Hugo
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Hugo in HTO Trading,

SP 500: Still making new highs but seems to be losing steam

Since the beginning of the year the US Index gained more than 10.0% however last week closed flat with a minor gain of 0.04% and remains in a bullish phase since mid-May.

Last week the index went back and forward without any clear direction with a narrow range and a narrow spread, closing in the middle of the weekly range, additionally closed within the previous week range, which suggests a being clearly neutral, neither side is showing control.

Stochastic is showing an extreme overbought market although is still displaying a strong bullish momentum.

Expecting a downward move to a weekly support at 2,364.50 (scenario 1) on the break below the previous week low at 2,456.75 and a bounce from the weekly support plus a break above 2,400.75 may set in motion another bullish run up to a Fibonacci extension at 2,549.02 (scenario 2).