Hugo
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Hugo in HTO Trading,

SP 500: Expected pullback should be underway

Since the beginning of the year the index gained more than 6.0% although last week gave back to the market more than 0.5% and continues in a bullish phase since the end of June.

Last week the index fell with a wide range and closed near the low of the week but managed to close within the previous week range, which suggests being slightly on the bearish side of neutral.

The stochastic is showing an extreme overbought market and is starting to display a shy bearish momentum.

Expecting a downward move to a weekly support at 2,119.00 (scenario 1) on a break below the previous week low at 2,157.50 however a break above the weekly support at 2,133.50 may push the index up to the Fibonacci extension at 2,176.00 (scenario 2).