Nasdaq Breaks 50-DMA, S&P on the Brink

While the Dow is down just 50 points at the moment, both the S&P 500 and the Nasdaq are quietly down more than one percent.  As shown in the first chart below, the Nasdaq just broke below its 50-day moving average for the first time since July, which means its multi-month uptrend is in big jeopardy.  The S&P 500 is currently testing support at its 50-DMA, and the bulls are desperately hoping that it holds.  The same thing happened for the S&P at the end of September, and the bulls prevailed.  We'll see how it plays out this time around, but things definitely look a lot different now than they did just a couple weeks ago.  The S&P's 50-day is right above 1,050, so that is the level to watch for the remainder of the day.

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