Progressing Through The Rally

With the market continuing higher today, we have now moved towards the 1.00 extension of the move off the recent lows, and have turned down. I have added a support box for you to track for continuation higher.

To remind you again, it seems likely that this rally is taking shape as an ending diagonal. And, within ending diagonals, wave 3 targets the 1.236 extension of waves 1-2. So, I am expecting that we will hold over support and rally to the wave 3 target in the 7870SPX region.

OF course, should the market break down below support in an impulsive manner, then that will bring the alternative b-wave count to the forefront. But, for now, my primary wave count is still looking for another push higher before we see a more sizeable pullback in wave 4.

The only other point I want to make is from the 60-minute SPX chart.  Take note that we are almost at the bottom of that standard target for the larger degree diagonal.  And, once we move to that box, we can see a reversal at that point, as there is a way to consider the next higher high into that box the completion of the larger degree structure.  So, please realize that risks do rise once we get to that target box.