e-SPU Remains Resistant to Meaningful Weakness

As we approach the mid-point in today's session, the hourly pattern certainly looks like the e-SPU may already have completed a minor correction from yesterday's new all-time high at 1992.00 to this morning's low at 1981.50.

A sustained climb above 1994.50 will confirm that is the case, and will trigger projections to 2020-2030 next.

Though it might be difficult to believe that the e-SPU satisfied a correction and is ready to turn up, we cannot rule out that possibility, especially if Mario Draghi's Jackson Hole speech (2:30 PM ET) proves extremely accommodative, and gives us the impression that conditions are so uncertain and fragile in Europe that Janet Yellen could not possibly tighten sooner than later without "throwing Europe under the bus."

Bottom line: As long as the e-SPU is beneath 1994.50, the index will remain vulnerable to additional corrective weakness into the 1970/60 target zone.

Conversely, a climb above 1994.50 will argue for upside acceleration towards 2020-2030.