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.

February is over, and it brought two very different outcomes depending on where you looked. UK markets had one of their best months in years, while US indices struggled to break past a ceiling. Here’s what the data shows as we move into March.

Let’s get into this week’s newsletter!

US & UK INDICES OVERVIEW

S&P 500

The S&P 500 is in an interesting spot right now. On one hand, it’s still technically in a long-term uptrend. But on the other hand, it hasn’t made much meaningful progress since October 2025. 

February ended with a slight drop of 0.87%, leaving the year-to-date growth at just 0.49%.

The main challenge seems to be a key resistance level. The 2025 high of $6,945 has acted like a ceiling, turning back attempts to move higher, not once, but twice.

January and February both saw the index briefly push past this level, only to slip back down by the end of each month. And just above that sits the $7,000 mark, a big psychological hurdle for investors.

Together, these levels have created a tough resistance zone that the market hasn’t been able to break through yet.

Last week added to the uncertainty. The market closed down 0.44%. If the market weakens further, there’s support around $6,562, where buyers might step in.

But if the index can gather enough momentum to push through that $6,945 resistance, it could clear a path to $7,000 and beyond, into record-breaking territory.

The S&P 500 is currently in a consolidation phase, waiting for a catalyst to drive its next move. For investors, this is a good time to stay patient, watch key levels, and get ready for upcoming opportunities. Markets naturally go through ups and downs, but understanding these patterns can help you stay confident and prepared.

Dow Jones

February brought a small but encouraging sign for the Dow Jones. With a modest gain of 0.17%, it managed to close above last year’s high of $48,886, ending the month at $48,977.

While the increase is minor, it’s a step in the right direction, especially when paired with the year-to-date gain of 1.9%.

The climb wasn’t without challenges. The Dow briefly rose above the $50,000 mark, a key psychological level, but dropped back below it by the end of the month.

The question is whether the Dow can continue its upward trend in March or if it will stay below the $50,000 mark. Regardless, holding its position above last year’s high indicates potential strength.

Nasdaq 100

The Nasdaq underperformed its peers, falling 2.32% in February and dropping 1.15% year-to-date.

Like the S&P 500, the Nasdaq is meeting resistance at its 2025 high of $26,182. This level has prevented the index from moving higher, trapping it in a period of consolidation

 Although the long-term trend is still positive, the price hasn’t been able to create the higher highs and lows needed to confirm a new upward trend.

March will be a key month. The Nasdaq needs to break decisively above its 2025 high to regain momentum. Otherwise, more sideways trading is likely.

FTSE 100: 

The index has been on a remarkable run, and February’s performance continued what is shaping up to be one of its strongest trends since the 1990s.

The FTSE finished February up 6.72%, pushing its gains for the year to 9.86%. It even climbed 2.09% last week alone.

What’s interesting is how steep this climb has been. After breaking a key resistance level in April 2024, the index has steadily moved upward, accelerating in recent weeks. The rally is reminiscent of what we saw in the nineties.

Trends this strong don’t last forever. They often lead to a significant correction or a long period where the market just moves sideways.

I’m not saying a pullback is right around the corner, in fact, the strong close in February suggests this run might have more room to go, but it’s something to keep in the back of your mind as you watch this unfold. Always be prepared for what might come next.

PERFORMANCE REVIEW

Coca-Cola (KO)

After being stuck in a range between $60 and $73 for over a year, the stock finally broke out in January 2026, climbing past its 2025 high of $74. Then, February saw a strong 9.02% jump.

The stock has performed well this year, rising 16.66% year-to-date with a 2.15% gain last week alone. This breakout appears more sustainable than previous attempts. For instance, a promising rally in April 2025 ultimately failed, but the current momentum appears stronger.

Looking ahead, the next big hurdle is the $100 mark. That’s a good distance from where we are now, which means there’s plenty of room for growth if the momentum keeps up.

Coca-Cola’s stock hasn’t had a smooth ride in years, it’s been a history of significant pullbacks and long periods of going nowhere. But markets can change, and this breakout might just be the start of a more lasting trend.

OUTPERFORMING ASSET FOR THE WATCHLIST

Johnson & Johnson (JNJ)

Johnson & Johnson has performed strongly in 2026, with year-to-date growth of 20.04%. February alone saw an impressive 9.32% gain, showing clear momentum for this stock.

What’s interesting is how this upward trend has been building over time. Back in October 2025, it broke through a major resistance level at $186, followed by clearing $200 in November.

December saw a brief pause, a little breather, before January and February brought strong bullish moves that reignited the rally.

Last week, the stock continued its steady climb, closing with a 2.45% gain. On Friday, it broke above a previous high, confirming the upward trend remains strong. This isn’t a random spike but a controlled rise, with the price staying above key support levels. This consistency suggests the rally could continue. The outlook for March remains positive.

Looking Ahead

Currently, 58% of U.S. stocks are trading above their 200-day moving average, a slight drop from 60% last week. While the market appears stable, long-term trends suggest it may keep rising. However, it’s smart to stay prepared for potential fluctuations.

Keep it simple. Keep it Sublime.

The ST Team

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