Welcome back 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.

We hope your new year is off to a strong start. The markets have been showing bullish momentum, which is always an exciting sign. Each week, we’ll continue to share new opportunities to help you navigate this momentum effectively. Be sure to check in regularly and take the time to explore the stocks we highlight. Small, consistent steps can lead to big growth over time. Let’s make the most of these opportunities together.

Let’s get into this week’s newsletter!

US & UK INDICES OVERVIEW

S&P 500

The S&P 500 started 2026 on a strong note, gaining 1.76% year to date and signaling a confident start to the new year. The index is now trading above its 2025 high of $6,945, breaking through key resistance levels.

Over the past week, the S&P 500 has shown steady growth, rising 1.57%, including a 0.65% gain on Friday. This rally stands out due to its technical setup. After breaking above the February 2025 high of $6,147 in June, the index has maintained an upward trend.

While there was a notable correction between October and November 2025, during which the index dropped 5.76%, it quickly recovered and regained momentum, hitting new record highs.

The outlook remains positive. On Friday, the index closed above the January 7th high of $6,965, confirming a continuation of the bullish trend.

Although the breakout was modest, it suggests momentum is likely to continue. For now, the trend remains strong as long as the S\&P 500 keeps forming higher highs and higher lows.

Dow Jones

The Dow Jones Industrial Average is off to a strong start in 2026, up 3% so far this year. It’s currently trading above the 2025 high of $48,886, showing solid momentum as we move into the new year.

If the Dow closes above the 2025 high, we could see further gains. The next key resistance level is the significant $50,000 mark. With the index not far from this level, it will be interesting to see how it performs if the upward trend continues.

Ideally, we’d like to see the Dow reach $50,000, break above it, and maintain a pattern of higher highs and higher lows. Reaching this milestone could represent a critical turning point for the index.

Nasdaq 100

The Nasdaq 100 is showing strength but following a different path compared to other indexes. It’s up 2.05% year to date but isn’t hitting new record highs. Instead, the index is consolidating in a range that began in October 2025.

The all-time high, which is also the 2025 high, is at $26,182. This consolidation phase looks more like a pause in the uptrend rather than a reversal. The next key move will be for the index to break above that level and continue climbing.

Based on the technical setup, a breakout could lead to strong momentum and new highs. For now, patience is important as the index builds energy for its next move.

FTSE 100: 

The UK’s FTSE 100 index has seen positive performance, rising 1.95% year-to-date. It surpassed its 2025 high of 8,954 and broke above the 10,000 level.

The index showed strong momentum with a 1.74% gain for the week, and Friday’s 0.80% rise indicates continued buying interest.

After breaking out above 8,908 last July, the index has maintained a consistent upward trend. A correction in November 2025 was followed by a quick recovery to new record highs.

The next target is the January 6th 2026 high of 10,158. A close above this level would confirm the upward trend and could lead to further gains. Given the momentum from the end of last week, a breakout seems likely.

PERFORMANCE REVIEW

Applied Materials (AMAT)

Applied Materials has shown strong performance in the semiconductor equipment sector, climbing 17.2% year-to-date. This significant growth within just one month highlights the momentum that can build when a stock breaks out of a long consolidation phase.

The stock faced a steep correction between July 2024 and April 2025, dropping 51.49%. It wasn’t until December 2025 that the price broke above the consolidation range, and even then, only slightly.

However, January 2026 has been a breakout month, with the stock moving beyond the 2025 high of $276 and now trading above the $300 level, signaling impressive strength.

Last week alone, the stock gained 12.02%, driven by a strong 6.94% increase on Friday, further confirming the bullish trend. Moving forward, it’s important for the price to continue climbing past the $300 mark to confirm it’s not acting as a resistance level.

The stock first broke above the July 10th high of $255 on December 2nd, then pulled back to retest that level as support before bouncing higher.

On January 5th, it broke through the December 10th high of $276, and on Friday, it surpassed the January 6th high of $298 while pushing past the key $300 level.

As long as the stock continues forming higher highs and higher lows, it’s likely to establish a long-term upward trend, especially considering the lengthy consolidation phase that preceded this breakout.

OUTPERFORMING ASSET FOR THE WATCHLIST

Marriott International (MAR)

Marriott International is showing the kind of strength that makes hotel stocks appealing in a growing economy. So far this year, the stock has risen 5.78%, surpassing the 2025 high of $316.

The company is in a strong long-term uptrend with no signs of slowing down. Both weekly and daily charts indicate bullish momentum, and on Friday, it gained another 1.01%, adding to its positive momentum.

The key breakthrough came in mid-December 2025, when Marriott broke above a major resistance level at $307. After an initial rally, the stock pulled back to test this new support, found buyers just above that level, and has since climbed higher, breaking through previous highs.

This price action is a classic technical trading setup consisting of a breakout, a successful retest of support, and continued upward movement. As long as Marriott keeps forming higher highs and higher lows, the trend is likely to remain intact.

The next challenge will be maintaining momentum above these new highs, but the current technical structure points to further growth for this travel and leisure leader.

Looking Ahead

The percentage of U.S. stocks trading above their 200-day moving average increased from 59% last week to 61% this week. This indicates that the market is sustaining its momentum and may be poised for additional gains.

Keep it simple. Keep it Sublime.

The ST Team

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