Since the beginning of the year the US Index gained 4.5% and last week rose almost 0.9% plus made the first phase change this year, shifting from a bullish to a warning phase.
Last week the index rose with a narrow range and closed at near the high of the week, in addition managed to close within the previous week range, which suggests a being slightly on the bullish side of neutral.
The stochastic continues to show a steady bearish momentum however is still above the 50 mid line.
This healthy pullback may be setting the stage for a bullish flag pattern and a breakout from a flag often results in a move higher.
Expecting an upward move to 2017 high at 2,400.70 on a break above the previous week high at 2,358.00 (scenario 1) however a break below the Fibonacci retracement at 2,312.78 may set in motion the bears once again toward a weekly support at 2,254.75 (scenario 2).