No Sign of an End to the Correction Just Yet

The most salient aspect of the enclosed chart is that when the e-SPU sliced beneath 1559.75 earlier this morning, the price structure achieved downleg "equidistance" off of the May 22 high at 1680.25.

What that means in English is that the downleg from the May 22 high at 1680.25 to the June 6 low at 1591.00 equaled the distance traveled by the current downleg from the June 19 high at 1649 to 1559.75, or 89.25 points.

It is not a coincidence that the e-SPU has found support in and around 1560 so far today.

That said, the rebound off of 1560 is not very impressive yet, which is a warning signal to us that "equidistance" has not ended the corrective process yet.

In fact, I would argue that the e-SPU must climb and sustain above 1575 to trigger initial signals that a meaningful near term low could have been established.

Barring such a rally, the index will remain vulnerable to a resumption of selling pressure that points to 1540/36 next.