Stocks were crushed Monday, with the Dow closing down 326 points to 15,732.80 and with the S&P 500 down 40 points to 1,741.89. A very weak Institute for Supply Management report on manufacturing was blamed, as was Asia.
Market technicians, or chart readers for the rest of us, are paying close attention to the current levels of the market. More specifically, the key 200-day moving average has come into play on Monday.
The indexes were at their lowest levels since late October. The NASDAQ Composite Index had tumbled 107 points to 3,997. The Nasdaq hasn’t closed under 4,000 since Nov. 25.
The Dow has been the most volatile of the three major averages this year.
The Dow was trading under its 200-day simple moving average Monday for the first time since Dec. 2012. Its 14-day relative strength index, a measure of momentum, was at 28. A reading below 30 suggests the index has fallen too…