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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.”