Fast Move To Resistance

Before we could blink, the market is already at the resistance region I outlined yesterday when we were at the lows.  So, the question now is if the market can follow through and begin to break support?

Based upon the high struck today, we could develop a 5-wave decline to suggest that the c-wave down has begun.  We will need to see a 5-wave decline taking us to 6400SPX or lower to provide us with wave i of a c-wave or 3^rd wave down.  Until that happens, no one should view a break of support as becoming a higher probability.  And, until the market provides that set up, I have to at least consider the potential for this market to push higher one more time in the target/resistance box overhead on the 5-minute SPX chart.

So, while we may have struck a top, we still have not broken support to suggest it is potentially a larger degree top.  And, until the 6343SPX support is broken, the market retains potential to continue to extend even higher into our resistance/target box above.

Therefore, we need to take this one step at a time, especially if we want to maintain expectations of further downside.  Without an initial 5-wave decline to suggest the c-wave or 3^rd wave lower has begun, we do not have a set up pointing us down in any meaningful way.