Investors Are Eyeing This ‘Key Technical Indicator’ as Stock Market Hovers Near Correction | Global News Avenue

On another turbulent day of Tuesday’s trading, most investors’ thoughts might be: “When will this end?”

this S&P 500 President Trump said his tariffs on Canadian steel and aluminum exports doubled, down 1.5% on Tuesday Supply Chain The whole continent. Stocks rebounded Tuesday afternoon after threatening to return to slightly higher trade, but their record was as high as 8% compared to three weeks ago.

S&P 500 S&P is below “key technical indicators”

Technical analyst Recently, an alert about index crossover was issued below them 200-day moving averageLarry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report, called for “key technical indicators for many large institutions” in his notes on Sunday.

Tentarelli quoted hedge fund manager Paul Tudor Jones, saying: “The indicator of everything I look at is the 200-day closing price average… The whole trick of investing is: ‘How do I avoid losing everything?” If you use the 200-day moving average rule, you’re leaving. You play defense, you go out. ”

Tentarelli’s warning about the 200-day moving average is responding to Nasdaq 100 Close below that threshold on Friday. He said this is only the fourth time in seven years that the index has crossed its 200-day moving average. The latest happenings are brief in March 2023, but the first three since 2017 involve average decline According to Tentarelli, about 18%.

The S&P 500 fell below its 200-day moving average for the first time since October 2023. This is also a brief decline. Still, Tentarelli recommends investors using the Nasdaq 100 and S&P 500 standard standard years “go more cautiously” until the index returns to its 200-day moving average.

Citi says

Citibank analysts are more optimistic about the near-term outlook. They called the S&P 500 in a Tuesday research report, 0.5% lower than the S&P 500’s trough.

Citi analysts noted that despite tariff uncertainty, S&P 500 is expected Free cash flow This year. They acknowledge that the “scale and sustainability” of the flow is uncertain, but large companies are still in the “good financial flexibility this year”.

Citi analysts expect Trump’s near-building efforts to increase capital expenditures as S&P 500-year long Increase their investment In domestic manufacturing. But in the short term Economic and policy uncertainty It may cause the company to reduce its capital expenditure plan, potentially releasing cash for other purposes, including Stock buyback.

“If large U.S. stocks continue to correct, we expect stock buyback activity to increase, thus providing some support for stock prices,” analysts wrote.

In the long run, accelerating buybacks can also support stock prices.

“The continuous ‘departure’ of the S&P 500′ is also consistent with the favorable long-term supply and demand setting,” analysts wrote.