• S&P 500’s hourly chart indicators suggest scope for a pullback. 
• The index risks falling to the 50-hour SMA support. 

The S&P 500 index looks heavy, as the hourly chart slow stochastic indicator is reporting a bearish divergence. The hourly chart relative strength index has also diverged in favor of the bears.

A bearish divergence occurs when an indicator prints lower highs, contradicting higher highs on the price chart and is indicative of ebbing of bullish momentum.

In addition, the hourly chart MACD histogram has crossed into a bearish territory below zero.

As such, the index could drop to the ascending 50-hour simple moving average (SMA), currently at $3,354. The bearish case would be invalidated if prices find acceptance above $3,389.

HOURLY CHART

Trend: Bearish