The last five trading days saw the S&P 500 index make some wide intraday swings but the opening and closing price ranges were relatively narrow. During this period of range compression a series of high wick candles have formed on the daily chart. These candles reflect an inability to hold higher levels and are a sign that price momentum has stalled, and further consolidation or a pullback may be required before a continuation of the primary trend. As we have been saying for some time, the stochastics oscillator has been an accurate indicator of oversold and overbought shifts in the index. It has reentered its overbought zone and combined with the appearance of the high wick candles, requires very close attention at this point.