S&P 500 falls below closely watched long-term average but rebounds along with Dow

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The Dow Jones Industrial Average and the broader market tested fresh lows on Friday, a day after the blue-chip indexgave up 1,033 puts, marking its second-worst point decline in history and entering into correction territory. Anintraday reversal on Friday, which had taken the Dow down by more than 500 points at its lows, at 23,360, could push theblue-chip gauge closer to its 200-day moving average at 22,792.41, according to FactSet data. Moving averages arewatched by technical analysts to determine the short-term and long-term momentum in an asset. Breaching such a level forthe Dow would help to confirm that a lengthy uptrend for the blue-chip gauge is near an end. Meanwhile, the S&P 500index was recently trading up 0.3% at 2,590, but briefly breached its 200-day moving average at 2,538.95, falling to asession low at 2,532.73. The Nasdaq Composite index , meanwhile, was up 0.4% at 6,806, just above its long-term averageat 6,556.41.

-Mark DeCambre; 415-439-6400; AskNewswires@dowjones.com