Nasdaq Composite falls below its 200-day moving average, joining Dow and S&P 500
The Nasdaq Composite Index slumped 1.3% in afternoon trade, putting on track to close its 200-day moving average after just 15 sessions above the key technical level. That would mark the shortest stint above the 200-day MA, which many chart watchers view as a dividing line between longer-term uptrends and downtrends, since it peeked above it for just five-straight sessions through Dec. 24, 2012. The Nasdaq would join the S&P 500 Index and Dow Jones Industrial Average , which closed below their respective 200-day MAs on Thursday. Meanwhile, the Russell 2000 Index of small-capitalization stocks, the Dow Jones Transportation Average and the NYSE Composite Index all failed to close above their 200-day MA's during the broader market's recent rally. On a bright note, the last time the Nasdaq closed below its 200-day MA after such a short stint above it, it closed below the line for just three sessions, then shot up 5.1% in two days to start a 21-month stint above it. The Nasdaq's 200-day MA currently comes in at 4,955.75.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.