Since the start of the year the index fell more than 1.5% and this past week fell more than 3.5%.
Last week the index plunged with a wide range and closed near the low of the week suggesting strong bearish momentum among the investors about the future prospects of the index.
The Stochastic is showing an overbought market and at the same time displaying bearish momentum that may trigger an even stronger bearish move.
This past week the S&P500 changed from an accumulation to a recovery phase and is trading above the 10 and 200 week moving averages signaling that the upward move may have been exhausted.
Expecting a downward move to a weekly support at 1973 on a break below previous week low at 2011.25 (scenario 1) or a bounce from a key level at 2034.25 could push the index down to a weekly support at 2011.25 (scenario 2).