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The spring pushes down, the wheel is suspended above the spring. When the weight of the car rests on the wheel, the spring is pushed up and compressed. The wheel is mounted on top of the spring. If you lengthen the distence from the spring to the wheel, it will sit higher in the wheel well.
Yeah the spring puses down. If you ever try to remove that spring bolt, you better have some kind of jack holding it, because that sucker can take your head off.
Since my ability to express my ideas in words is limited, I decided to try pictures. Well, I found I'm lacking there as well. ;)
The spring is allways compressed the same amount for a given weight. In it's natural state, the end near the wheel would want to drag along the ground. The spring is fixed to the center of the car.
When you add a longer red bolt, your "pushing" the wheel higher in the air. Remember, the weight doesn't change, so the spring is still compressed the same amount.