As the stock market rallied 20 to 30 percent off its December lows, investors slowly warmed up to the idea of a renewed bull market.
But they shouldn’t get too cocky just yet.
The rally has seen its share of divergences, both technically and inter-market amongst the major indices.
For instance, the S&P 500 and Nasdaq rallied to new all-time highs, while the Russell 2000 and Dow Jones Industrial Average did not.
Today’s chart 2-pack looks at the Russell 2000 (NYSEARCA: IWM), along with another key stock market sector that failed to make new all-time highs: the Transportation Sector (NYSEARCA: IYT).
In fact, a closer look at the charts shows the potential for a bearish head and shoulders pattern on these two important indexes.
Stock market bulls do not want to see selling pick up here!
Russell 2000 (IWM) and Transportation (IYT) Charts
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