On March 23, 2020, the S&P 500 hit its pandemic low at 2,237. The 50-day moving average had crossed below the 200-day moving average — the classic 'death cross' — on March 30, confirming the bearish regime that had already destroyed 34% of market value in 33 days. But here is what separates the mechanical indicator-reader from the analyst who understands what indicators actually measure: by March 30, the RSI on the S&P 500 had surged from 20 (deeply oversold) back above 50 while price was still 25% below the February high.

The momentum had turned positive even though the trend was still technically broken. An investor who waited for the golden cross (which didn't arrive until early July 2020) missed 40% of the recovery. An investor who read the momentum divergence — price stopped making new lows while RSI was already making higher lows — entered near the bottom.