S&P 500 Pierces 200-Day Moving Average as Last Defense Gives
(Bloomberg) -- The fourth time proved to be too much.
The S&P 500 Index finally tumbled below its 200-day moving average, dragged down by tech troubles and tariff talk. It’s the first time the index closed below that support level since June 2016, the third-longest such stretch in the past 30 years and the sixth-longest ever.
To chart watchers, the failure portends even bigger declines to come.
Investors can anticipate a slide of up to 5 percent, Adam Turnquist, Piper Jaffray’s technical analyst, said last week. That would take the S&P 500 some 14 percent below its January record.
The benchmark fell 2.2 percent Monday in New York, its lowest since the frantic February sell-off that sent the index into a correction.
©2018 Bloomberg L.P.