(Bloomberg) -- The volatility roiling financial markets spared few assets Tuesday, though a curious commonality emerged among the wreckage -- selling in everything from Tesla (NASDAQ:TSLA) Inc. to gold and tech shares halted at their average prices over the past 50 days.
The Nasdaq 100 plunged 4.8% Tuesday to close at four-week low, two points above its 50-day moving average. Gold dipped below its short-term mean for a second day before closing above it. Tesla, down 34% in September after doubling since June, ended 58 cents over the technical level.
Chart watchers track moving averages to determine where lines of resistance may appear as a stock or commodity moves up and down. The levels are often briefly breached and then reclaimed as automated orders kick in. Should the levels fail, technical analysis holds, then momentum will pick up speed.
Take crude oil. Selling took it below the 50-day average three straight days before it opened sharply lower than that Tuesday and sank 7.4%. It closed not far above its 100-day average.
During the five-month rally that added $7 trillion in value to U.S. equities, major indexes and individual stocks had risen so far above the technical levels that massive drops like the ones in the past three days weren’t met with much technical pushback. The Nasdaq needed to fall 11% to hit its short-term average.
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