The Dow Jones Industrial Average Just Dropped Below Its 50-Day Moving Average

From Tyler Durden: The VIX — commonly known as athe “fear gauge” — has spiked to 15.45 this morning as global war rhetoric combined with French elections are finaly shocking some investoirs out of their complacency.

This is the highest level for VIX since the election, and the Dow Jones Industrial Average just broke down below its crucial 50-day moving average:

As we’ve noted several times in the past, the 20-day and 50-day moving averages have continually acted as support for the major U.S. indexes, including the Dow, S&P 500, and Nasdaq 100.

What happens next? Investors will have to wait and see, but it appears that volatility is returning to the markets in this holiday-shortened week. That could spell muted returns for stocks at the very least, and possibly another big sell-off like we saw back in mid-March.

The markets have been stuck in a very tight range since then, and the longer that factor remains in place, the larger the resulting move tends to be.

The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) was trading at $205.83 per share on Tuesday morning, down $0.56 (-0.27%). Year-to-date, DIA has gained 4.21%, versus a 4.83% rise in the benchmark S&P 500 index during the same period.

DIA currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #5 of 74 ETFs in the Large Cap Value ETFs category.


This article is brought to you courtesy of ZeroHedge.

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