Potential Break of Triangle

I am sending this update out due to the action we saw last night, wherein the futures seem to have invalidated the triangle count.  However, while the futures have now invalidated the triangle count, the SPX has not.  But, due to the futures invalidation, I have added the ending diagonal count to the 60-minute SPX chart, as that is starting to look a bit more likely with the futures invalidation.

What this chart now shows is that 7480SPX is our resistance.  That is what I would view as the wave ii in this ending diagonal.  That now places this bounce in the overnight action as the b-wave in wave iii, with the wave iii target being the 1.236 extension in the 7228SPX region.  

Should the market break out over 7480SPX in the coming days, and especially if it does so impulsively, then we are going to have to take the yellow count much more seriously going forward.

Those are my adjusted parameters in the coming days.

Also, please take note of my adjusted yellow count.  With wave i of 3 traditionally targeting the .618 extension, I am now assuming that a break out in the yellow count would mean we are in wave (iii) of wave i of wave 3, and not the start of wave (iii) of 3.  The reason I have adjusted that count is because the rally seen off the wave 2 (and assuming this pullback is a smaller degree 2nd wave) would project a 2.00 extension right towards that .618 extension above in the 8000 region.  That fits more as a wave i of 3 rather than the start of wave iii of 3.  Therefore, it would be reasonable to expect a wave ii before we see a meaningful break out over the 8000 region in the yellow count.

But, in all honesty, the corrective structure that I have labeled as wave (ii) in yellow is unusually large relative to wave (i), which, again, tells me that the market MUST prove this count to us with an impulsive move through 7480, which follows through over 7580SPX.  At that point, I probably would have no choice but to adopt this interpretation.