Is SP Breaking Below 200-Day Moving Average Signaling a Volatile Ride Ahead? Volatility has become the new normal in the stock markets this year, and today’s news that the benchmark Standard & Poor’s 500 index has fallen below its 200-day moving average suggests that even more turbulence may be ahead. The decline of the index below the 200-day moving average indicates that investors are in a “risk-off” mode and may be selling stocks in anticipation of further volatility. The 200-day average is a widely used indicator for gauging a stock’s longer-term trend. When the index dips below that line, it usually signals that the stock is in a downtrend. In the United States, stocks have become increasingly volatile over the past few months as investors react to the growing trade tensions between the United States and China, as well as the ongoing Geopolitical unrest in the Middle East. It is important to note that the 200-day moving average is not a guarantee of further stock market volatility, but should be considered an indication that the market could see additional swings in the near term. In addition to geopolitical concerns, investors are also likely concerned about the possibility of rising inflation in the United States, as well as the increasing likelihood of an economic slowdown in 2020. All of these issues could lead to further stock market turbulence in the coming weeks and months. In order to maximize returns in a volatile market, investors must be prepared to adjust their portfolios in order to take advantage of the market’s ebbs and flows. As we have seen in recent months, investors should stay abreast of economic and corporate news and not panic when stocks experience dips. Investing in specific sectors that have already proven to be resilient to volatility, such as consumer staples, technology and health care, may help investors ride out any potential storm. Ultimately, the fact that the S&P 500 has broken through its 200-day moving average should not be seen as a signal of potential doom, but instead a reminder to take a more cautious approach to trading and investing. By using smart diversification and actively monitoring the news, investors can navigate this volatile market and potentially reap the rewards of an eventual return to stability.