In a sign of how the market’s upward trend has been waning, both the Dow Jones Industrial Average and the S&P 500 are mere points from their 50-day moving averages, a level that is often seen as a measure of near-term momentum. If the indexes close below the technically significant point, that would represent the first time that they did so since Nov. 8 – the day of the U.S. presidential election, where Donald Trump’s victory spurred an extended rally that took indexes to repeated records. The indexes did break below the moving average on a session in late March, but they subsequently recovered to end above it. Were they to close below the level, that could spur additional selling. At 20,567, the Dow is currently 0.1% above its 50-day moving average of 20,547.48, according to FactSet. The S&P is 0.3% above its moving average of 2,340.96. Both indexes are down about 0.5% on Monday. The Nasdaq Composite Index , which has been a stronger performer thus far in 2017, is 1.6% above its 50-day moving average.
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From:: Stock Market News