Below is what we discussed early this morning... So far, the e-SPU is following a "bearish digestion" script, a sideways pattern that when complete, should resolve itself in another down-leg that tests and breaks the Aug 24 low at 1831.00. MJP 8/26/15
If we adopt the premise that from a technical perspective, the dominant near-term trend has been down since the May 19 high at 2134, and if we also surmise that the huge down-spike into Monday's Aug 24 low at 1831 ended "something" on the downside, then our challenge is to label the pattern off of the 1831 low-- either as the start of a new upleg in the aftermath of a completed correction, or a sideways bearish digestion period ahead of more weakness.
Right now, all of the action off of 1831 exhibits the form of a digestion period that when complete should resolve itself to the downside into another decline that projects to 1800-1790 as a min. target, with 1770/50 as the optimal, downside-continuation objective.
Only a sustained climb above 1950-1970 resistance will confirm the Aug 24 low and that a new upleg is in progress. MJP 8/26/15