The S&P 500 index (SPX) reclaimed the 200-day moving average on Monday, which is a major technical buy signal. This brings new all-time highs back into the picture.
The 200-day moving average (200-DMA) is one of the most important and widely followed technical indicators in the stock market. It represents the average closing price of a stock (or index) over the past 200 trading days, and it helps investors understand the long-term trend of that stock. It is widely regarded as the most important moving average that institutions use. Legendary investor Paul Tudor Jones said, “My metric for everything I look at is the 200-day moving average of closing prices”.
Since April 11, our view has been that the April 7 SPX low of 4835 was the final low for this cycle, as we wrote here.
Yesterday’s close over the 200-DMA and key resistance level of 5800 put new all-time highs back on the table in 2025.
With the 90-day U.S./China trade tariff pause yesterday, we upgrade semiconductors, industrials and banks. Our top ranked ideas in the sectors include Nvidia (NVDA), Taiwan Semiconductor (TSM), GE Vernova (GEV), GE Aerospace (GE) and J.P. Morgan Chase (JM).
