Warning: file_exists(): File name is longer than the maximum allowed path length on this platform (260): C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br/wp-content/cache/supercache/www.forexbr.com.br/2020/02/26/market-extra-stock-markets-6-day-drop-set-to-mark-fastest-slide-into-correction-territory-since-2008/meta-wp-cache-ed0bb59612c6470b58108dc7b52cd2e4.php in C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br\wp-content\plugins\wp-super-cache\wp-cache-phase2.php on line 71 Market Extra: Stock market’s 6-day drop set to mark fastest slide into correction territory since 2008 – Forex Brasil

Market Extra: Stock market’s 6-day drop set to mark fastest slide into correction territory since 2008

The S&P 500 index flirted with a full-blown market correction Thursday, a move that would mark its fastest such slide since the financial crisis.

The S&P 500 SPX, -1.59% was off around 64 points, or 2%, near 3,053 after trading as low as 3.006.96. A close below 3,047.54 would mark a decline of more than 10% from the benchmark large-cap index’s all-time high, meeting a widely used definition of a correction.

The S&P 500 posted a record close of 3,386.15 on Feb. 19. If a correction is confirmed at the closing bell, the index’s six-day drop would mark its fastest slide into correction territory since a two-day drop on Nov. 5-6 2008, during the depth of the global financial crisis, according to Dow Jones Market Data.

The drop also saw the S&P 500 dip below its 200-day moving average at 3,046.91, according to FactSet. A fall below the average can trigger chart-inspired selling. Technical analysts view a close below the 200-day average as a signal of long-term trend shift.

The Dow Jones Industrial Average DJIA, -1.66%tumbled more than 800 points at its session low and remained off around 555 points, or 2.1%, at 26,403. A close below 26,596.28 would mark a more-than-10% drop from the blue-chip gauge’s all-time closing high.

The Nasdaq Composite COMP, -1.90% was also changing hands below the correction threshold. The tech-heavy index was down around 217 points, or 2.4%, near 8,763. A close below 8,835.46 would push it into correction mode.

Underlining the brutality of the selloff, the S&P 500 remained on track for an 8.7% weekly fall, while the Dow was off more than 9% for the week to date as the Nasdaq eyed an 8.6% decline. Declines of that magnitude would be the largest weekly falls for all three indexes since October 2008.