The Dow Jones Industrial Average is headed for the biggest one-day rally in over four months, but that’s not quite enough to change the shorter-term technical outlook to positive from negative. The Dow, up 277 points at 18,165, was still about 51 points below its 50-day moving average, which many chart watchers use as a dividing line between shorter-term uptrends and downtrends. The Dow has closed below its 50-DMA since Sept. 9. Meanwhile, it was well above its 200-day moving average, which is viewed as a longer-term trend dividing line and currently extends to 17,779. The S&P 500 was up 1.7% at 2,121. It closed Friday (2,085.18) just above its 200-DMA (2,083.18), but was still well-below its 50-DMA (2,146.89) even with Monday’s rally. The Nasdaq Composite jumped 2% to 5,147, to sit comfortably between its 200-DMA (4,944.15) and 50-DMA (5,237.63). The NYSE Composite rose above its 200-DMA (10,356.18) Monday, after closing below it the previous three sessions.
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