Still Squeezing Higher To Target

As you can see on the 5-minute SPX chart, we are only a few points to the minimum target expectation.   But, in truth, the ideal target is actually higher in the 6528SPX region, which is the 1.764 extension of waves 1-2 in this ending diagonal which began earlier this month at 6212SPX.

So, while we clearly do not have an initial indication of a top being struck, I am on the lookout for a reversal now.

Today’s pullback low at 6467SPX is our micro support.  And, as long as we remain over that support, this can continue to squeeze higher.  But, we really need to break down below the b-wave low struck earlier this week to make it much more likely a reversal has begun.   Ultimately, as I have explained before, we need to break down below the wave (4) low at 6343SPX to provide a much stronger initial indication that a top has been struck.  We will then be looking for a break down below 6212SPX for confirmation.  

As you know, it will be the break-down below 6212SPX which will then allow us to analyze the nature of that break down, and I am expecting we will be able to remove one of the three paths we are currently tracking at that point.