Dow, S&P 500 perilously close to falling below closely watched long-term averages

The Dow Jones Industrial Average and the broader market appeared to be testing fresh lows on Friday, a day after the blue-chip index gave up 1,033 puts, marking its second-worst point decline in history and entering into correction territory. An intraday reversal on Friday, which had taken the Dow down by more than 300 points at its lows, or 1.4%, at 23,506, could push the blue-chip gauge closer to its 200-day moving average at 22,792.41, according to FactSet data. At present levels, the Dow would need to fall another 740 points, at least. Moving averages are watched by technical analysts to determine the short-term and long-term momentum in an asset. Breaching such a level for the Dow would help to confirm that a lengthy uptrend for the blue-chip gauge is near an end. Meanwhile, the S&P 500 index SPX, -1.27% was off 1% at 2,555, just about 20 points short of its 200-day MA at 2,538.95. The Nasdaq Composite index COMP, -1.67% was down 1.1% at 6,701, just above its long-term average at 6,556.41. - Marketwatch