Nasdaq Composite Closed Below 50-day Moving Average First Time In 2 1/2 Months

By Tomi Kilgore Markets MarketWatch Pulse

The Nasdaq Composite closed below its 50-day moving average for the first time in 2 1/2 months, but chart watchers may be reluctant to declare a breakdown of the short-term uptrend. The index fell 1.4% to 6,144.35, while the 50-day MA, which many use as a guide to the short-term trend, came in at 6,149.36. The last time the Nasdaq closed below the 50-day MA was April 13, but it closed right back above it the next session, and kept trending higher until the recent record peak of 6,321.77 on June 8. The time before that, the index closed below the 50-day MA for just two days--Dec. 1 and Dec. 2, 2016--before rallying back above it. Meanwhile, the S&P 500 dipped briefly below the 50-day MA before closing 0.5% above it, while the Dow Jones Industrial Average closed about 200 points above its 50-day MA.

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