Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, along with analyses of selected assets that are outperforming the market.

Let’s get into this week’s newsletter!

US & UK INDICES OVERVIEW

S&P 500

The S&P 500 is showing a small bullish candle for May, currently up by 1.59% for the month. However, for the year, the index remains down 3.76%. The goal for the rest of May is for the price to keep climbing and eventually turn the S&P 500 positive for the year.

The index has already recovered well from April’s decline, when it dropped to a low of $4835. Since then, the price has risen by 16.92%, reflecting strong progress. The next resistance levels to watch are the $6000 mark, last year’s high at $6095, and the all-time high of $6147 set back in February.

On the weekly chart, last week closed with an indecision candle, struggling to break above the 50 simple moving average (SMA) at $5707. If the price continues to fail at this level, we might see another dip before any potential move upward. However, the focus remains on the price breaking above the 50 SMA and eventually surpassing the key resistance levels.

Dow Jones

The index is currently down 3.5% for the year but has recovered significantly since hitting its low in April, when it was down around 13.89%. We’re looking for the bullish growth seen in May to continue, aiming to build momentum toward the all-time high of $45,073.

Nasdaq 100

The Nasdaq is down 4.62% for the year but has come a long way since hitting a low in April, when it was down 21.23%. Since then, it has recovered 21.08% from that low.

The next goal is for the index to surpass its all-time high. Right now, it’s facing resistance around the major 20,000 level, which could continue to hold back further gains.

FTSE 100: 

The FTSE 100 is showing positive signs on the monthly chart. The May candle looks bullish, with the price sitting above the 2024 high of 8474, which is now acting as support. Earlier this month, the price touched this level before moving higher.

The next target is for the price to continue rising and eventually break above the all-time high of 8908, set in March 2025. So far this year, the FTSE 100 has gained 4.67%, with a 0.71% increase in May.

On the daily chart, the price is trading above the 20, 50, and 200 simple moving averages, showing a strong recovery since hitting a low of 7544 on April 7th. Since then, the price has climbed 13.41%, reflecting solid progress and signs of continued upward momentum. If this trend holds, we could see a breakout above the all-time high of 8908, set 46 trading days ago. A move above this level would confirm the continuation of the bullish trend.

PERFORMANCE REVIEW

CME Group (CME)

On the monthly time frame, CME Group has been consistently bullish since the start of the year. Every monthly candle from January 2025 has been bullish, and May is shaping up to continue that trend. Year-to-date, the stock is up 22.37%, showing strong performance and outperforming the broader indices, which are currently down. 

In May alone, CME Group is up 2.69% from last month’s close, maintaining its bullish momentum. Looking at its historical performance, the stock broke above the 2024 high of $249 in February, followed by another key resistance level at $256 in March. Since then, it has continued to rise and is now nearing the next major resistance at $300.

On the weekly time frame, the stock closed up 1.38% this past week, showing continued strength as May progresses. On the daily time frame, the price remains above the 20, 50, and 200 simple moving averages, with the 20 and 50 SMAs providing strong support. While the stock has been moving sideways since reaching a high of $286 on May 7th, any correction could see support at the 20 SMA around $271, followed by the 50 SMA at $264. Given the current momentum, the stock is expected to break through the $300 level.

OUTPERFORMING ASSET FOR THE WATCHLIST

Verisign (VRSN)

On the monthly chart, Verisign is forming a potential reversal candle for May. Since November, the stock has consistently shown bullish momentum with strong upward movement.

While price momentum appears to be slowing, if the stock continues to climb, the $300 level just above could act as a strong psychological resistance. Verisign has a history of steady upward trends, like the period between December 2016 and September 2018, when it gained around 116%. This stock has the potential for long-term upward moves, especially now as it hits record highs.

On the daily chart, a correction is underway. If the price continues to drop, the 20-day simple moving average at $266 could serve as support, followed by the 50-day simple moving average at $252.

Wherever the price finds support, we’ll want to see it bounce back and move higher. The key level to watch is a break and close above the May 7th all-time high of $288. If the stock breaks this level, it could push toward the $300 mark, where we’ll see if it can break through or start a longer-term decline.

Looking Ahead

Right now, 36% of U.S. stocks are trading above their 200-day moving average, a clear signal of growth and opportunity. The S&P 500 has rebounded an impressive 17% since its April 7 low following the tariff-induced slump. Don’t stay on the sidelines while the market heats up—capitalize on this upward trend today!

Keep it simple. Keep it Sublime.

The ST Team

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