NEUTRAL Mode Power Flow
WARNING: This page is about a different car, the 2007 GMC Sierra and 2007 Chevrolet Silverado. However, it is still accessible from the selected car via links, so may be relevant.
Shifting to the NEUTRAL position, the high/low clutch is centered between the input shaft and the high/low planetary carrier. The high/low clutch is not engaged with either the input shaft or the high/low planetary carrier teeth.