Dow industrials bounces after dipping below 50-day moving average at the open

The Dow Jones Industrial Average DJIA, -0.86% dipped very briefly below apparent technical support at the 50-day moving average (DMA) at the open, before bouncing back. The Dow fell as much as 471 points, or 1.8%, to an intraday low of 26,033.95 in the first minute after the open, while the 50-DMA extended to 26,082.65. It has pared gains since to be down 272 points around 26,233. The 50-DMA is viewed by many chart watchers as a guide to the short-term trend. Meanwhile, the S&P 500 SPX, -0.90% was down as much as 1.6% at its intraday low of 2,898.21, before paring losses to be down 1.1%. That low was still well above its 50-DMA, which came in at 2,854.66. Dan Wantrobski, technical strategist at Janney Montgomery Scott, said he believes Monday’s decline in the face ofpotential tariff news “will likely prove to be more shallow and temporary in nature relative to the October-December 2018 decline.”

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