The Big 3 stock market indexes are all falling toward their first closes below their widely followed 50-day moving averages for the first time in six weeks. Many chart watchers on Wall Street view the 50-day moving average (50-DMA) as a short-term trend tracker. The Dow Jones Industrial Average
DJIA,
slumped 388 points, or 1.2%, to 31,711 in afternoon trading, below the 50-DMA of 32,115, according to FactSet. Of the Dow’s 30 components, all of which were falling on Tuesday, 20 stocks were trading below their 50-DMAs. The S&P 500
SPX,
was down 1.4% at 3,974 and the Nasdaq Composite
COMP,
shed 1.7% to 11,813, below the 50-DMAs of 4,009 for the S&P 500 and 11,991 for the Nasdaq. All three indexes last closed below their respective 50-DMAs on July 18. Among other indexes, the Dow Jones Transportation Average
DJT,
the NYSE Composite
NYA,
and the Dow Jones U.S. Total Stock Market Index
DWCF,
were all headed for their first closes below their 50-DMA’s for the first time in over a month. Meanwhile, the Russell 2000
RUT,
shed 1.8% to 1,850, but was just above the 50-DMA of 1,842.
Read More: Dow, S&P 500 and Nasdaq in danger of closing below their 50-DMAs for 1st time since