Crash: S&P 500 and Dow Jones Break 200-Day


 
 
03:22 10/24/2018

At the moment, all we can do is wait for the selling pressure to stop. Unfortunately, markets are pulling back on the fear we were anticipating ahead of mid-term elections. On top of that, now we get news of bombs being sent around the U.S. On top that, some believe the Federal Reserve made a mistake raising rates too fast, which will make borrowing much more expensive. Mid-term election jitters are also to blame. Economic growth is slowing in Europe and Asia. And then, of course, the tariff war between China and the U.S. hasn’t been well received. This is all happening in the worst month of the year, mind you. The best thing to do right now is to just sit tight. What’s troubling is the 200-day has been breached on the Dow Jones and S&P 500. When it comes to technical analysis, moving averages are essential. For example, for more than 20 years, I’ve relied on two specifically – the 50-day and the 200-day simply moving average. Not only am I looking for crossovers for golden and death crosses, I want to see if a stock is holding its own above them.


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