S&P 500 and Nasdaq Composite face tests of 50-day moving averages amid Monday’s stock-market rout

Despite a significant drop in equities, the S&P 500 and Nasdaq Composite indices were struggling to hold above their short-term trading averages on Monday. According to FactSet, the S&P 500 index SPX, -1.64 percent was down 1.7 percent at 4,253, with its 50-day moving average at 4,240.02. Moving averages are commonly used by market analysts to assess an asset’s short and long-term momentum. A break below the 50-day moving average could signal a short-term change away from bullishness for the broad market index. Meanwhile, the Nasdaq Composite COMP, -1.03 percent was down 1.4 percent on the day at 14,232, although it was still trading above its 50-day moving average of 14,015.21. The Dow Jones Industrial Average DJIA, -2.26 percent, was down 2.1 percent at 33,958, with its 50-day moving average at 34,383.56, according to FactSet data. As the spread of the delta form of COVID-19 widened, investors were deemed to be concerned about the economic outlook, resulting in a drop in stock prices./nRead More