Since the beginning of the year the US Index gained more than 6.0% however last week closed flat with a minor loss of 0.27% and made a phase change, shifting from a warning to a bullish phase.
Last week the index went back and forward without any clear direction but managed to close near the high of the week, additionally closed within the previous week range, which suggests a being slightly on the bullish side of neutral.
Stochastic is showing an overbought market and is setting lower highs while price is making higher highs, signs of a potential bearish divergence.
The double top pattern is a clear signal that the former upward trend is weakening and that buyers are losing interest.
Expecting a downward move to 2016 high at 2,254.75 on a break below the previous week low at 2,344.25 (scenario 1) however a bounce from the weekly support at 2,254.75 may set in motion the bulls once again toward a Fibonacci retracement at 2,312.78 (scenario 2).