S&P 500’s Dip Below Pivotal Line Spells Danger for Stocks: ChartBy
Tuesday’s selloff put U.S. equities to the biggest test for bulls since the U.K.’s vote to exit the European Union in June. The S&P 500 Index closed below its 100-day moving average, breaking a trend line that had proved to be support during the rout in early September. A lack of a quick rebound may put the market in danger of steeper losses, as was the case in August 2015 and early this year. In those instances, stocks fell into 10 percent corrections after the index failed to hold on to the threshold.