Your picture is too small to know for sure, but that sure looks like a small date to me. See http://www.lincolncentresource.com/smalldates/1970Ssmalldate.html
Click the picture for a bigger pic You can click the picture for a bigger picture. I orginally put in small date. Sometimes it is hard to tell. The 7 does look lower than the 9 and the 0 from an angle but at first look it looks like small date. I know the 7 is parallel in a small date.
I think you are right, it is a small date I think. The difference seems kind of slight and difficult to tell.
Look at the loop in the 9. It points toward the 7 on the small date. It points down and is blunt for the large date. You might also look at http://www.cointalk.com/t93080/
Yes, the 9 is different and more apparent since the picture does look like 7 is more lower on the large date but not exactly parallel on the small date either. The 9 gives it away. The nine is curly and points to the 7 on the small date, like the penny in the picture and in the large date the nine points down and is not curly. My conclusion, this penny is a small date.