Key Takeaway
Despite the media, who feels their job is to scare the pants off of investors, the S&P 500 has come very close to full recovery. Because we've had such a strong "V-Shaped" recovery thus far, it's only natural for the market to take a pause. There are a lot of very constructive positive technical indicators as of late: 1) RSI is back above 50 with a positive slope (want to make sure this holds); 2) MACD is back above the zero mark - although we want to keep an eye on the possibility of a negative cross-over (if so, this could simply signal a pull back within a greater up-trend); 3) The moving averages (20, 50, 200) are now all sloping up; 4) The 20-day moving average has now crossed above the 50-day moving average (blue arrow below).
In summary, everything looks really good as of now. Keep in mind though that the markets are very subject to political and geopolitical shocks, which is why it's so important to monitor the trends.
