Small-caps need to break above a key resistance level to signal more bullish momentum for stocks. Otherwise, it could signal broader weakness, BofA said.

U.S. stocks rallied on Friday to close out a strong week on optimism over the health of the economy and path of interest rates as investors braced for a slew of policy changes under the incoming Trump administration.

Can they regain momentum after Trump takes office? Wall Street’s so-called fear gauge has dropped this week, as the U.S. stock market appeared relieved that Treasury yields retreated from their recent climb.