Dow, S&P 500 retake trade above 50-day moving averages, after Wednesday’s plunge

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The S&P 500 index and the Dow traded above their short-term trading average on Friday, two days after the benchmarks suffered the steepest losses in months on the back of intensifying turmoil in the White House. The S&P 500












SPX, +0.91%










was recently trading up 0.7% at 2,382, which is above its 50-day moving average of 2,369.35, according to FactSet data. The Dow Jones Industrial Average












DJIA, +0.82%










was up 0.6% at 20,784, above its short-term average of 20,773.63. Both equity gauges on Wednesday tumbled below their short-term trading averages, as volatility spiked amid investors’ worries about President Donald Trump’s ability to enact Wall Street-friendly policies reached a crescendo. Market technicians use moving averages to help to determine an asset’s short-term and long-term trends, with a break above the 50-day line signaling a bullish uptrend. Trump has been assailed by a number of stories that allege that members of his presidential campaign have ties to Russia and that he attempted to interfere with a federal probe, all of which the president has denied. On Wednesday, the S&P 500, the Dow and the Nasdaq Composite Index












COMP, +0.82%










rang up their worst losses in months, while the market’s fear gauge, the CBOE Volatility Index












VIX, -16.37%










saw its biggest one-day pop in nearly a year. The VIX tends to have an inverse relationship with stocks and is used by investors to bet on big market swings lower. The three main benchmarks are still set to record weekly declines, but trading action over the past two sessions may signal that investors are taking a respite from Wednesday’s political turbulence.


Source: marketwatch.com