Nasdaq Composite Breaks Below 50-day MA First Time In 2 1/2 Months

The Nasdaq Composite tumbled 2.1% in afternoon trade Thursday, putting it on track to close below the widely-watched 50-day moving average for the first time in 2 1/2-months. The 50-day MA, which many chart watchers use as a guide to the short-term trend, currently extends to 6,149.36. But technicians may be reluctant to call the move a "breakdown" of the short-term uptrend, as the last time the index closed below the line on April 13, it closed right back above it the next session, and kept going until the recent record peak of 6,321.77 on June 8. Before that, the index closed below its 50-day for just two sessions--Dec. 1 and Dec. 2, 2016--before rallying back above it to resume its uptrend. Meanwhile, the S&P 500 dipped below its 50-day MA (2,408.84) intraday before bouncing back above it, while the Dow Jones Industrial Average was still about 180 points above it (21,079.81).

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