Markets are facing an early summer swoon, and it's not even the July 4 weekend.
The insight: Amid a week of heightened volatility, especially for tech stocks, the S&P 500 (^GSPC) closed below its 50-day moving average for the first time in more than two months on Friday, according to Yahoo Finance AlphaSpace ****** ysis. The index appears set to start the week under this level based on premarket trading action on Monday.
The 50-day moving average is one of the most widely watched technical indicators on Wall Street, calculated simply by averaging a stock or market's closing price over the past 50 trading days and plotting it as a continuously updated line on a chart. It gives investors a real-time snapshot of a stock or market's medium-term price trend.
Read more: How to protect your money during turmoil, stock market volatility
When a stock or market is trading above the 50-day moving average, it is generally considered to be in a healthy uptrend, signaling that buying momentum is stronger than selling pressure. A stock or market trading below that line is often viewed as technically weak and vulnerable to further downside.
The insight: Amid a week of heightened volatility, especially for tech stocks, the S&P 500 (^GSPC) closed below its 50-day moving average for the first time in more than two months on Friday, according to Yahoo Finance AlphaSpace ****** ysis. The index appears set to start the week under this level based on premarket trading action on Monday.
The 50-day moving average is one of the most widely watched technical indicators on Wall Street, calculated simply by averaging a stock or market's closing price over the past 50 trading days and plotting it as a continuously updated line on a chart. It gives investors a real-time snapshot of a stock or market's medium-term price trend.
Read more: How to protect your money during turmoil, stock market volatility
When a stock or market is trading above the 50-day moving average, it is generally considered to be in a healthy uptrend, signaling that buying momentum is stronger than selling pressure. A stock or market trading below that line is often viewed as technically weak and vulnerable to further downside.
1 month ago
