Reached Bottom Of Target/Resistance

The [c] wave rally continued today, and we have now bumped our heads on the bottom of our target/resistance box. In the SPX, this is the [a]=[c] point.   But, as I outlined in prior updates, this is where [c]=.764*[a] in the ES, as it struck a lower low relative to the SPX.

So, as we continue higher, I have raised our signal level in the SPX to 5998SPX.   Remember, once we break back below that level, we will have to analyze the nature of the decline.  If the decline is corrective in nature, then we will have to begin looking higher towards the 6150SPX region as another extension in the prior wave degree.  However, if the decline is clearly impulsive, then we will begin to prepare for the c-wave decline, and a test of the important support below.

For now, the market has not given us a signal that the [c] wave is done.   So, it can clearly continue to push higher, especially when we consider the [a]=[c] point in the futures still reside higher.  But, once we break back below the signal level (which now stands at 5998SPX), then we can make an assessment about the direction of the market for the next few weeks.   

Again, I am still taking this step by step.