Still Inching Higher - Market Analysis for May 16th, 2017

The market seems to be crawling up to the resistance region we set for this rally quite some time ago.  But, as long as we remain below that resistance, I still expect a c-wave down.

As you can see on the 5 minute chart, there are still a few ways this can play out over the coming days.  Most simply, the market will either provide us with an impulsive break down below 2381SPX to signal the c-wave has begun, or it will continue up with another squiggle to complete the b-wave right into our resistance region.  But, again, as long as we remain over 2383SPX, the market can continue to consolidate before our resistance is struck.

As you can see from the attached IWM chart, it too suggests that we can still see one more rally before its second wave tops.  It would take an impulsive break down below 137 to open the door to a 3^rd wave down in its c-wave.

So, for now, while I still look higher for the final squiggles in this pattern, please recognize that risks rise the closer we get to that resistance region we have been targeting for quite some time.