Your black wire in the 2 wire connector is your remote sensing wire. It should run to your junction connection (the other end of the red wire). I'm assuming it is not the same wire that is grounded to the alternator as Gord suggests.
Many people just run it to the terminal where you have the red wire but that is a bad idea.
Here\'s why. Your blue can run to a warning light but it will work without it.
