Dow heads for first close below 50-day moving average in 5 months

/ / News

The Dow Jones Industrial Average is tumbling 851 points, or 3.1%, and is on track to close below its widely followed 50-day moving average (50-DMA) for the first time since April 24. The 50-DMA, which many on Wall Street view as a way to track the intermediate-term trend, currently extends to about 27,487, according to FactSet. Many see a close below the 50-DMA as a sign to swing from bullish to at least neutral, and maybe even bearish. If the Dow were to close below that line, it would join both the Nasdaq Composite and the S&P 500 . The Nasdaq first closed below its 50-DMA on Sept. 8, and is headed for the sixth close below it in 10 sessions. The S&P 500 is headed for just the second close below its 50-DMA, after first closing below it on Friday.
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.