The markets have so far continued to recover from the strong October selloff this week. The S&P 500 (SPY  ) has made its way back to the 200-day moving average, which technical traders will note as a key area. Since falling over 10% the SPY has recovered almost 6% of the decline.

The Nasdaq 100 (QQQ  ) has traded in a sideways range so far this week, but it too finds itself just under the 200-day moving average. The QQQ has suffered more of a setback thanks to the weakness in tech stocks, but over the last few weeks has been able to recover about 6.5% of the sell off.

Transportation stocks (IYT  ) were one of the harder-hit areas during last month's selloff, but now have become one of the fastest-recovering sectors of the markets. Since hitting a low last week the IYT has recovered nearly 8%. Technical traders note the level of the oversold condition as well, as it still has another 2.5% to go before getting back to the 200-day moving average.

So far this week the Consumer Staples stocks (XLP  ) have been one of the standout sectors. The XLP has made new highs each day this week and are now near 8-month highs. Technical traders note the heavier volumes on this recent move as money flows from other sectors to the defensive sector.

Lastly, the Financials (XLF  ), which were one of the harder-hit areas of the market, have come back towards a very important technical level. The recent rally has moved the XLF back to the top of the new downtrend, which will prove to be a critical area for the sector.

For the rest of the week investors will be left to digest the results of the midterm elections as well as any comments or decisions out of the Federal Reserve on Thursday regarding interest rates or the future of their rate hikes.