SPX Strength: Recovery Rally, or New Upleg?

Since its July 19 all-time high at 2019.26 to yesterday's low at 1820.66, the SPX has declined 198.6 points, or by 9.2%. Off of yesterday's low at 1820.66 into today's rally high at 1873.66, the index has recovered 2.9%, or just over 30% of the prior decline.

In that my near-term (intraday) pattern work continues to exhibit counter-trend rally form, I view current strength as a recovery rally that when complete, will roll over into a resumption of dominant downtrend weakness, that should press SPX to new lows beneath 1820.66, and possibly into the vicinity of 1740/30.

I am expecting the recovery rally to end in the 1880-1890 resistance zone.

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