Despite all the negative talk regarding how FAANG and trade wars are going to crash this stock market, we have not even been able to see a decent pullback, much the less anything resembling a crash. Yet our expectation for 2018 was that the S&P 500 will begin a rally to 3,000-plus, with the exact path being the only question which we have been trying to answer. This past week provided the market plenty of opportunity to give us that pullback we have been looking for in the b-wave for the S&P SPX, +0.35% and the wave (ii) in the Russell 2000 IWM, +0.56% RUT, +0.65% While the IWM has formed the start of a nice pullback structure, the SPX has pushed a few points higher than I had wanted to see within this pullback structure. While I do recognize that many pullbacks in this bull market off the 2009 lows have been shallow, I really have a hard time “counting” a completed pullback even into the shallow low struck this past week in the S&P. You see, that bottom was struck on a 3-wave structure. And, since triangles and w-x-y patterns bottom on a 3-wave structure, neither of those patterns fit the S&P’s current structure. And, when I couple this with the ideal a-b-c structure being formed in the IWM, it still makes me look for a (c) wave decline in the coming week. via