Has the market recovered from its early-year fall-off? Yesterday, the Dow Jones Industrial Average and the S&P 500 both cleared an important hurdle: They closed above their 50-day moving averages, for the first time all year.
The 50-day moving average is a key indicator for many investment observers. Generally, a stock that is trading above its 50-day moving average is considered to be in pretty good shape. The same is considered true for the broader indexes as well.
The price of oil also closed above its 50-day average, for just the second time this year. The Nasdaq and the Russell 2000, a small-cap benchmark, remain about 2 percent below their 50-day averages.