S&P 500 is showing a formation. The price action currently is trading below the 20 period . Indicators like and are pulling back from overbought levels. Given enough time these indicators could move to neutral or oversold position if the price action continues with its sideways consolidation. Current resistance levels on the upside are located at the previous high of 1422-1426 level. Only a significant break out and a daily close above these levels could potentially expose the next logical resistance at 1440-1447 level. Alternatively if a further pullback materialises the support levels on the downside are located at 1397 followed by 1389, 1377 and finally 1365 all of which are Fib Retracement levels from July 2012 low to the current August 1426.68 high. Blue scenario is exploring a potential outcome and the Red scenario is exploring a potential outcome.