So Far, a Feeble Recovery Rally Effort

What are we to make of the pathetic "recovery" action in the Emini S&P 500 today?

Yesterday, in the immediate aftermath of the election, the e-SPZ declined 47.75 points off of its Obama rally high at 1431.75 to the intraday Wednesday low at 1384.00. During yesterday's morning session, the index recovered to 1399.75, which so far has been the high-water mark for the recovery.

Today's recovery rally peak is 1397.50, a lower recovery high the day after the carnage, which is not a particularly encouraging sign of a developing bottom.

On the contrary, all of the action off of yesterday's low continues to carve out the a sideways digesting pattern under 1400, which given the dominant downtrend sinceJuly 14, argues for downside continuation that projects next into the 1365/60 area.

Only a climb above 1397.50 will begin to neutralize the growing prospect of another break to the downside.