Manic Market - But Still Looking Lower

This morning, I had an evil thought, and that was that the market may try to develop as an expanding triangle for the b-wave, which would slightly take out 2039SPX, only to whipsaw it back up towards the 2070SPX region.  I have since modified that to a running triangle, but, nonetheless, unless the market is able to maintain its downside pressure, we may still see one more rally back up before heading lower.

Ultimately, as I have been warning, trying to trade the whipsaws in this region have been quite treacherous.  While I am still looking lower to our next target region between 1995-2008, there seem to be several ways we can get there, and they all include a significant amount of whipsaw.  Of course, this could even be an ending diagonal down for the move into our lower target region, but that is very hard to assume at this point in time.

So, from a big picture perspective, as long as the market remains below 2075, I am still looking down.  If we take out 2090SPX, that would make me think twice about whether we can see a higher high before a bigger drop takes shape.  But, for now, it is unclear how we get to those lower lows with all this whipsaw action masking the pattern toward our next lower target.

5minSPX
5minSPX
1turnchart
1turnchart
Avi Gilburt is founder of ElliottWaveTrader.net.