The stock market rally from the March crash lows has been sharp but lumpy.
The S&P 500 Index and large cap stocks have lead the way higher, while the Russell 2000 Index and small cap stocks have lagged.
That said, today’s chart highlights a significant overhead price hurdle for both large and small cap stocks.
The S&P 500 Index is approaching at key pivot point level at (1) as well as its 61.8 percent Fibonacci retracement at (2). This confluence of resistance looks very important.
The same can be said for the Russell 2000 Index. It is approaching an important pivot point marked by prior highs and lows at (1), as well as its 38.2 percent Fibonacci retracmeent at (2). Again, very important.