The Dow Jones Industrial Average tested its 200-day moving average this past week. It has done so twice before over the past 12 months – once in October and again in February – and both times proved to great entry points for investors.
So, is this a good time to jump in?
Gina Sanchez, founder of Chantico Global, thought the market was overvalued. Now she is more positive after this recent drop. "If the economic recovery is still intact – and I actually believe that it is – then this actually is a very interesting opportunity for the Dow," she said.
Sanchez, a CNBC contributor, notes that revenues have been stronger in the second quarter of 2014. She sees that as a good sign for the markets.
"We're looking at a situation where things could actually be really starting to look up and valuations are at a good price," she said. "The biggest risk you take is the price you pay for anything. I think the Dow is actually pretty good right now."
Craig Johnson, senior technical analyst at Piper Jaffray, is also bullish on the Dow. Tests of the index's 200-day moving average have "proven to be great buying opportunities" over the past few years, he said. That's because an uptrend he sees as beginning in 2011 is still intact.
"This to me looks and feels like just a normal pullback, correction right back to the 200-day, and a great buying opportunity," Johnson said. "At this pullback here, we're starting to look a little bit oversold."
To see the full discussion on the Dow Jones Industrial Average, with Sanchez on the fundamentals and Johnson on the technicals, watch the above video.