The Recovery Rally Continues After All

As of this moment, the recovery rally off of yesterday's unconfirmed corrective low at 1624.75 remains intact, and still the dominant extreme near-term influence on the Emini S&P 500 (e-SPU).

This morning's swoon to 1627.75, followed by a sharply-upside reversal, now satisfies the criteria for a successful retest of yesterday's low at 1624.75.

Based on our discussion of the likely counter-trend rally price path late yesterday, the "blue dotted line" on the attached chart remains valid for upside continuation into the 1650/58 target zone prior to increasing likelihood of a resumption of the larger, dominant downtrend off of the Aug high at 1705.