S&P 500: A pause to refresh the rally – Morgan Stanley

After a 35% rally from the lows, equity markets appear to be taking their first real break. Mike Wilson from Morgan Stanley analyzes the S&P 500 chart.

Key quotes

“We continue to think the 200-week moving average on the S&P 500 will provide strong support for a market that bottomed in March. That level is currently 2650.”

“The 50-week moving average, which is closer to 3000, provides resistance until we see how the reopening of America fares.”

“This correction will be a pause that refreshes and a necessary condition for higher prices later this year.”