The Dow’s break below the 50-day average “is an indication that the market is in trouble. I’m fairly confident that we’re in a bull market correction, and if you’re a fund that is trying to allocate resources, you want to be in a market that’s trending higher,” said Walter Zimmermann, technical analyst at ICAP Technical Analysis.
“The 50-day moving average is a lagging indicator, suggesting the market peaked a few weeks ago. It doesn’t tell you where critical support comes in.” Zimmermann estimated that support would be 19,600 on the day, a level that is about 7.5% below the blue-chip average’s all-time high, which was reached on March 1.
Source Market Watch
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