The S&P 500 SPX, -0.86% was down 1% in late-afternoon trade Thursday, putting it on track to close below the widely-followed 50-day moving average for the first time since...just four weeks ago. The 50-day MA currently comes in at 2099.88, according to FactSet. Many technical analysts use the 50-day MA as a guide to the short-term trend, so closing below it, after some time above it, is often thought to warn of an impending selloff. But after closing below the 50-day MA for three-straight sessions in early May, the S&P 500 closed at a record high a week later.
The index also closed below its 50-day MA four times throughout April, seven times in March, twice in February and 15 times in January, and yet it has closed at record highs at least once in every month since February.
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