The dip in the Dow Jones Industrial Average and the S&P 500 index below their respective 200-day moving averages lasted just one day, as the broad stock market barometers bounced sharply back above them on Tuesday. The Dow closed up 269 points at 17,410 and the S&P 500 rose 1.8% to 2,036; meanwhile, the Dow’s 200-day MA came in at 17,244 while the S&P 500’s was at 2,021. Many chart watchers use the 200-day MA as a dividing line between longer-term uptrends and downtrends. Prior to Tuesday’s close below the 200-day MA, the Dow had last closed below it on March 10 and the S&P 500 had closed below it on March 15. The last time the S&P 500 closed below its 200-day MA for just one day, after spending at least the three prior months above it, was on Aug. 3, 2007; the index didn’t close back below it for a week, but hit a short-term bottom about two weeks later. For the Dow, the last time was May 10, 2004; it was back below it within three sessions, and hit a short-term bottom about a week later.
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From:: Stock Market News