As the market grapples with uncertainties amid the ongoing policy disruption and tariff battle, Jurrien Timmer, director of global macro at Fidelity Investments, suggests that a simple look at the S&P 500 chart offers a compelling answer for those pondering their next move: “long.”
What Happened: In a recent X post accompanied by a 10-year S&P 500 index chart, Timmer presented a straightforward yet insightful perspective. He posed the question, “At times of uncertainty, I find it useful to pull up a simple chart of the S&P 500 and ask myself: do I want to be long or short this chart?”
His conclusion, drawn from the technical patterns displayed, leans firmly toward establishing or adding to “long” positions.
The chart, tracking the weekly performance of the S&P 500 and its 200-day moving average, highlights a consistent rising uptrend line that has provided a general floor for the market over the years. Notably, Timmer points out the recent market action, where the index swung from a position significantly above this trendline to one considerably below it.
According to the data presented, the S&P 500 appears to have gravitated back to this long-term uptrend line. This convergence, according to Timmer, “suggests that the market has found its balance.”
Timmer’s analysis hinges on core technical analysis principles. The rising uptrend line typically indicates sustained buying interest and a general positive trajectory for the asset. A temporary dip below this line can often be interpreted as an oversold condition, presenting a potential buying opportunity as the market seeks to revert to its established trend.
Why It Matters: Despite Timmer’s personal views based on his analysis, investors could potentially consider having “long” positions; however, the decision to be “long” or “short” rests with each individual investor.
After Wednesday, the S&P 500 index was out of the correction zone, just down 8.34% from its record high of 6,147.43 points, scaled on Feb. 19. Dow Jones was 8.78% lower than its 52-week high of 45,073.63 points, and Nasdaq 100 was 10.6% lower than its previous high of 22,222.61 points.
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Thursday. The SPY was up 0.76% to $565.43, while the QQQ advanced 1.08% to $488.50, according to Benzinga Pro data.
The SPY closed 0.42% higher at $561.15, and the QQQ advanced 0.39% to end at $483.30 on Tuesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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