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Nov. 26, 2021, 10:47 a.m. EST

Dow's Black Friday plunge puts blue-chip stock gauge at risk of closing below 50-day moving average

U.S. stocks were facing their worst Black Friday trade in recent memory and the decline was putting the Dow Jones Industrial Average (DOW:DJIA) at risk of closing below its 50-day moving average for the first time since mid October, as markets wrestle with reports of a new coronavirus variant.The Dow was down 826 points, or 2.3%, to trade at 34,969, which is below its 50-day MA at 35,261.93. Scientists say the coronavirus strain has a high number of mutations that may make it more transmissible and allow it to evade some of the immune responses triggered by previous infection or vaccination. Meanwhile, the S&P 500 index (S&P:SPX) , and the Nasdaq Composite Index (NASDAQ:COMP) were both trading sharply lower but holding above their short-term MAs. Moving averages are used by technical analysts to gauge short-term and long-term momentum in an asset.

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