"Wait for signal 'touched' " is why it is not working.
The signal "touched" is probably signaled 'before' you enter that Event. --OR-- since it's inside a Trigger event (On Touched) it may be just checking for signal at that very moment only.
Anyway, You must remove the 'Wait for signal "touched" ' and if you think it's important, then try program it differently.
For example: Have an instance variable for menuButton called "touched', and instead of using signals, use that variable to True. Then, On Touched menuButton, also, if that "touched" is True, then go to Levels.