50-day average goes bye-bye

For the first time in almost 4 months, the S&P 500 closed more than a tiny bit below its 50-day moving average. It ended its streak within 15 days of sitting at a 3-year high, a sign of ebbing momentum. Of the 19 other times it behaved similarly since 1928, it tended to see further selling over the next week, with a positive return 42% of the time. But by 2 months later, it was higher 84% of the time, averaging +4.4%.