Dow has closed below its 50-day MA without touching 200-day MA intraday for 31 straight days
by Tomi Kilgore
An obscure and rare chart pattern, which on the surface appears to say nothing, is actually sending an important message about the stock market, at least for the near term — the rally off the February lows has already ended.
The Dow Jones Industrial Average DJIA, -0.09% closed below its 50-day moving average, which many technicians believe defines the short-term trend, for the 31st straight session. At the same time, the Dow has yet to slip enough to touch its 200-day moving average, which is seen as a dividing line between longer-term uptrends and downtrends, even on an intraday basis.
The next longest streak that the blue-chip barometer was stuck between the two moving averages was the 29-day stretch ending in November 1989.