Stocks were doing what they're supposed to do in an overbought condition - pulling back. Short term bullish momentum has deteriorated and there are some negative divergences between the indicators (MACD, RSI and OBV) and the price levels on the charts of the major indexes. We need to keep an eye on those divergences which tend to have longer term implications. Bulls simply took a breather. Near term downside is limited and expect investors to stay cautious ahead of next week's FOMC meeting. The 1700 level proved to be a tough resistance for the S&P 500.