The stock market recovered somehow after the previous day’s selloff. Breadth closed on a strong note : 2720 stocks advanced compared to 772 that settled down. The cumulative advance/decline line has lost only one percent since the highs reached on the 3rd of May, meaning that internal momentum is still strong. We observed heavy buying on advancing stocks as measured by our capitulation index and calls buyings by options traders. We estimate that there’s a 40% chance that the market may retest the 2800 area again. Most systematic models are on the verge to turn up which may induce renewed buying activity. Our proprietary model is usually turning slightly ahead of the ones used by most market participants.