The Nasdaq Composite plummeted on Tuesday morning, with the fall in the technology-laden index pushing it below its 50-day moving average for the first time in about four months. The Nasdaq COMP,
was down 2.2% lower at the last check, after a 2.5% slippage on Monday, putting the high-tech index at around 13,233, below its 50-day moving average, seen by technical analysts as an indicator of short-term momentum in an asset, at 13,240.68, according to data from FactSet. The index has not surpassed that level since October 28, according to Dow Jones Market Data. Market watchers tend to see moving averages as the demarcation line between bullish and bearish momentum in an asset. The broader market, however, has been tilted downward as yields on government bonds have increased, forcing investors to evaluate their investments in technology stocks that are being considered richly valued. The S&P 500 SPX index,
fell 1% to 3,837, while the Dow Jones Industrial Average DJIA,
fell 0.6% in Tuesday’s stock at 31,341.
