Overview
- Barchart reports the S&P 500 finished a fourth week below its 20-week moving average, a widely watched trend gauge.
- Since 2018 there have been seven such streaks, and in the prior six cases the index fell further after the signal.
- The Dow and Nasdaq have dropped about 10% and 12.6% from recent highs, which places both in correction territory.
- The S&P 500 is down roughly 8.7% from its peak, leaving it near the 10% decline that investors label a correction.
- Traders view a break below this average as a possible turn from an uptrend, though results also hinge on earnings, the economy, and market liquidity.