Both the S&P 500 and Nasdaq composite were trading lower on Friday, adding to the weakness they’ve seen since the start of November. This continued decline may cause both indexes to break below a key technical level: the 50-day moving average.
The 50-day moving average gives technical traders a way to measure price trends beyond day-to-day volatility, so some traders see moving averages as a way to tell if market momentum is shifting.
The S&P 500 has traded above its 50-day moving average for 137 consecutive trading days, as of yesterday’s close. That’s the longest streak since Feb. 26, 2007.