Pause Refreshes or the End of June-July Rally?

After popping above its May 22 down trendline at 1630 earlier today, the e-SPU has stalled, but it is consolidating above 1630, which remains a very constructive technical sign.

That said, after its 86.25 point and 5.6% rally since June 24, we have to allow for a digestion/correction period to emerge to work off its near-term overbought condition.

As long as the e-SPU holds above 1627, the action off of 1639.50 will be considered a high-level digestion period ahead of another thrust to test the June 19 rally peak at 1149.

On the other hand, weakness that breaks and sustains beneath 1627 will argue that a deeper correction is unfolding, that should press the index to 1610/08, and if violated, to 1598/94.