What Happened
Berkshire Hathaway’s incoming CEO Greg Abel has made a significant $2.8 billion investment in Delta Air Lines (DAL), signalling a sharp strategic shift from predecessor Warren Buffett, who famously dumped all U.S. airline holdings in 2020 at a loss during the COVID-19 pandemic. At the same time, Abel has been trimming or exiting some of Buffett’s legacy stock positions, reshaping one of the world’s most closely watched portfolios.
Key Levels — S&P 500 and Delta (DAL)
S&P 500:
- Support: 5,480 (recent consolidation floor) and 5,320 (April swing low)
- Resistance: 5,670 (recent recovery high) and 5,780 (February peak)
Delta Air Lines (DAL) — USD:
- Support: $44.50 (recent base) and $41.00 (multi-month low)
- Resistance: $50.00 (psychological level) and $54.20 (January 2025 high)
Technical Picture
The S&P 500 is attempting to hold above its 50-day moving average near 5,530 after a volatile few months driven by tariff uncertainty. Momentum is cautiously improving, with the RSI hovering around 52 — neutral territory. Delta itself has been in a recovery trend off its April lows but remains well below its 12-month highs, meaning Abel is buying into weakness — a classic value entry style consistent with Berkshire’s philosophy.
What Traders Are Watching
For the S&P 500, a clean break and daily close above 5,670 would signal renewed bullish momentum and could push toward 5,780. A drop back under 5,480 would raise caution flags. For Delta specifically, traders are watching whether the stock can reclaim $50.00 — a break above that level on strong volume would validate Abel’s entry and could attract momentum buyers. Watch also for any broader airline sector follow-through, which could lift sentiment across transport stocks.
Bias
Neutral-to-Bullish on Delta / Cautiously Bullish on S&P 500. Abel’s $2.8 billion conviction bet is a strong fundamental signal, but the S&P 500 needs to clear 5,670 to confirm the technical trend has turned. Berkshire-driven flows are worth watching — when the world’s most famous value house buys big, the market pays attention.
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