(Bloomberg) -- The violent selloff in U.S. equities is threatening a key support level for two major stock indexes.
The S&P 500 Index slumped as much as 1.6 percent Monday, briefly dipping below its average price for the past 50 days for the first time since August. The Dow Jones Industrial Average also saw its five-month streak of trading above that measure halted, as its selloff from a Jan. 26 record approached 6 percent.
The S&P 500's January rally was so strong that it pushed the index 6.7 percent above its 50-day average 10 days ago. That's the widest premium since 2011. Its stint above the key technical level was the longest since the 130-day run through March 2011.
Failure to close above the level tends to portend troubles, as was the case during the last two 10 percent corrections, in August 2015 and early 2016.
To contact the reporter on this story: Lu Wang in New York at lwang8@bloomberg.net.
To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net, Jeremy Herron, Randall Jensen
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