Equity Bears Threaten S&P 500's Last Line of Technical Defense
(Bloomberg) -- The S&P 500 Index’s toughest week in two years would have been worse if not for the last line of technical defense.
The benchmark for U.S. equities fell to as low as 2,585.89 Friday, putting it within a whisker of its 200-day moving average. It plunged 6 percent over the five days, as concerns mounted that higher interest rates and a brewing trade war would squelch global growth.
The jarring double-dip that equity investors have endured since stocks peaked in late January has seen the S&P 500 repeatedly bounce around two other abstract lines of defense: the 50-day and 100-day moving averages. It briefly dipped below the 200-day line during the worst of last month’s selloff before staging a torrid rebound.
Friday’s test occurred in the final 15 minutes of trading.
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