What each does at these key price points could well determine if the S&P 500 will have the strength to retest last years all-time highs.
This chart looks at Junk Bond ETf (NYSEARCA:JNK) and the S&P 500 over the past few months. The rally off the December lows has each testing popular Fibonacci retracement levels and resistance tests at the same time.
The bullish case for stocks would receive short-term positive news if both break above these important price zones.
The one thing the bullish case wants to avoid? Both creating reversal patterns as the Fib levels are being tested. What both do here should send important short-term messages to the bullish case for stocks.