The Nasdaq 100 Index bounced sharply back above a key technical level, just one-day after an apparent breakdown, but history suggests it's still too early to assume the short-term uptrend remains intact. The index rallied 1.4% to 5,753.03, while the 50-day moving average (MA), which many chart watchers use as a dividing line between shorter-term uptrends and downtrends, extended to 5,694.58, according to FactSet. On Tuesday, the tech-heavy index closed below its 50-day MA for the first time since Dec, 6, 2016. The 138-session streak above the 50-day MA was the longest such stretch since it closed above it for 166-straight sessions through Sept. 26, 1995. Back then, after the Nasdaq 100 snapped that streak on Sept. 27, it surged 3.3% to close back above the line on Sept. 28. It then fell 8.1% over the next six sessions before hitting a short-term bottom. The Nasdaq 100 has now rallied 18.3% year to date, while the S&P 500 has gained 9.0%.
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