With a stock market gap up on Tuesday, many traders scrambled to re-enter as they grappled with FOMO (fear of missing out).

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Additionally, the market is reaching a pivotal point as traders who piled in, wait for a breakout towards highs.

Looking at large-cap and big-tech indices, the S&P 500 (SPY) and the Nasdaq 100 (QQQ), have both consolidated over the past 4 trading days.

Now we are watching for each to clear new highs or break under past Tuesday's low.

As seen in the above daily chart, each index looks poised to break resistance levels dating back to early November.

$470.90 for the SPY and $401.19 for the QQQ.

However, the Small-Cap index Russell 2000 (IWM) could be painting a different picture compared to SPY and QQQ.

The battle of small caps vs. big caps continues with large companies beating the little guys throughout the year.

Additionally, IWMs weakness has become concerning especially if it heads towards the bottom of its range.

Though large caps indices, SPY, QQQ, and DIA are sitting near highs, we should not ignore a potential big divergence if IWM breaks under the lows of its yearly range around $208.

Therefore, we should keep an open mind of the market’s upside potential, but also know that if IWM continues to sideline or begin to trend under $208, this could be a signal for weakness in the overall market.