The S & P 500 passed two carefully monitored levels on Friday. It fell below the 200-day moving average and is down at more than 10 percent from its intraday height of 2,940.91 on September 21, a correction as defined on Wall Street. The 200-day moving average is one of the most popular technical indicators used by investors to help analyze price trends. The metric average price for the past 200 days is often considered as a barometer for whether the securities are in a healthy long-term trend. Earlier this year, in February, March and April, each S & P 500 bottom sold at the central level.
Both Dow and S & P 500 have wiped out winnings this year, with Nasdaq the only one of the big indices holding an annual gain of 3.3 percent. Of the 1
"You've got a ton of profits that happened last week and you're not going to get a sustainable bouncing until after the election, said Salt Financial's president Alfred Eskandar to CNBC. "We know where prices are, we know the Fed will increase by 25 basis points, it's all known. What is unknown is the result of the election [on Nov. 6]. It will give people the confidence to either put their feet on gas or ease off. "
Thursday was the busiest day of the company's earnings season for the third quarter, with giants like Amazon and Alphabet reporting.
Amazon shares threw revenue after Wall Street forecasts, while fourth quarter guidance also disappointed. The company's stock fell through the 200-day moving average, losing as much as 10 percent in after-trade. Google's overall alphabet also saw stocks decline after the technology company's revenues were also disappointed in the third quarter.
Snap and Western Digital also saw stocks such as falling while the technology company continues to lose money while the data storage company saw the revenue, under estimates.
Intel, Mattel and Expedia shares rose all a bit but were not enough to outweigh the falling momentum of the largest tech shares. 19659002] GDP grew faster than expected, which gave an immediate increase in stocks, as inflation was kept at bay and spending increased, according to data released by the Commerce Department on Friday. The consumer content was lower than expected in the final reading in October, although the key economic survey remains close to historically high levels.
The CBOE Volatility Index, also known as Wall Street Fighter, jumped as high as 27.52 on Friday, its highest level since October 11th when it hit 28.84. If VIX goes over 28.84, it will be at its highest level since February 12th when it hit 29.70.
– CNBCs Tom Franck and Fred Imbert contributed to this report.