With the market holding down below 2731ES, and dropping today in what seems to be the (a) wave of the e-wave of the triangle, we have to view the market as maintaining pressure down towards the 2600SPX region as long as we remain below 2731ES.
And, as I have explained before it would take a break out through 2742SPX to even consider a more immediate bullish wave structure.
For now, the best micro count I can see is that we are in a (b) wave within this e-wave of the triangle. Based upon the pattern I am tracking, I think it may turn into a flat, which means we “should” see lower to complete the b-wave within this (b) wave.
But, as I have said, trying to track a b-wave is about as easy as trying to throw jello for distance. So, until we see a bit more of this (b) wave structure develop, I am going to maintain an open mind regarding how the micro structure may take shape.
The main perspective remains that as long as the 2731ES level holds as resistance within this week, I think we are pointing lower in the e-wave of the triangle. And, again, it would take a rally through 2742SPX to even begin to suggest otherwise.