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 has shown solid growth this year, with a year-to-date gain of 9.84% and a strong finish in August, closing up by 1.91%.
It’s continuing its bullish trend on the monthly chart, which is encouraging for those tracking long-term performance.
However, the weekly chart tells a slightly different story. Last week ended with some uncertainty, marked by a small dip of 0.1%.
On Friday, the index closed down by 0.64%. If this pullback continues, the next key support level to watch is $6,417.
If the correction moves toward this support and it holds, there’s reason to anticipate a bounce back. The next milestone will be breaking above the August 28th high of $6,508. Clearing this level would signal a continuation of the bullish trend.
Dow Jones
The Dow Jones has been showing strong progress this year, with a year-to-date gain of 7.05% and an impressive 3.2% rise in August alone.
It finally broke through a key resistance level, which is the previous record high set back in December 2024 at $45,073.
For months, the index struggled to push past that level, but in August, it made a confident move, closing above it on the monthly chart. This is a big deal because it signals a potential shift in momentum.
If you’ve been following the markets, you’ll know that both the Nasdaq and S&P 500 had already reached new highs earlier this year. Now that the Dow has joined the party, it’s creating a strong alignment across the major indices.
Historically, when we see this kind of synchronized strength, it tends to lead to broader market moves. And with September being a key month for trend formations, there’s reason to feel optimistic about what’s ahead.
Nasdaq 100
The Nasdaq has also posted a solid year-to-date gain of 11.41%, with August closing up by 0.82%. While the candle for August isn’t a fully convincing bullish signal, thanks to that long wick above the candle, it’s a subtle sign of some correction that formed towards the end of the month. Think of it like a brief pause rather than a major setback.
As long as the index pulls back to a support level on the lower timeframe and holds steady there, there’s a strong chance we’ll see a bounce back and a continuation to the upside.
The Nasdaq is holding strong right now, and there’s reason to stay positive as we head into September. Market movements aren’t always linear, so it’s important to watch for support levels and stay patient. This is a great opportunity to refine your strategy and stay focused on the bigger picture.
FTSE 100:
The FTSE 100 closed with a reversal candle for August, closing up only 0.6% from the previous month but marking a solid 12.41% gain year-to-date.
Earlier this month, the index climbed 2.43%, but we’ve since seen a pullback from the all-time high that was set in August.
Weekly performance showed a dip of 1.44%, and on Friday, the index slipped 0.32%.
Looking at the bigger picture the FTSE reached its all-time high on August 22nd at 9,357 but has since pulled back to a key support level at 9,184.
This kind of correction can feel discouraging, but it’s also part of the natural ebb and flow of the market. What we’re watching for now is a bounce from this support level, which will give us a sign of recovery.
The goal now is a break and close above that August 22nd high of 9,357. Once the FTSE clears that level, it’ll confirm the bull trend is still on track.
PERFORMANCE REVIEW
American Express (AXP)
American Express has been delivering a solid performance this year, with a year-to-date gain of 11.62% and an impressive 10.68% jump in August alone.
By the end of August, we saw a bullish engulfing candle, which is a strong signal of upward momentum.
Since January 2025, the stock has been dancing around the 2024 high of $307, but August marked a turning point with a decisive close above that level and a new record high of $332.
The stock spent 151 trading days in a consolidation phase, moving between support at $220 and resistance at $326.
There was a false breakout above $326 in early July, followed by a dip back into consolidation, where it found support near $300.
It bounced back strongly from that support, pushing past resistance and setting a new all-time high by Friday, closing up 1.31% for the day.
To confirm a continued bullish trend, we want to see a clear move higher, followed by a healthy pullback, and then another push that breaks and closes above the previous high. This kind of pattern can signal stronger, sustainable growth.
OUTPERFORMING ASSET FOR THE WATCHLIST
JP Morgan Chase (JPM)
JP Morgan Chase has been performing exceptionally well this year, showing a year-to-date gain of 25.74% and closing August up by 1.75%.
Even on a weekly timeframe, the stock displayed solid momentum with a 1.75% rise, and the overall monthly trend remains firmly bullish.
The stock was stuck in an area of consolidation between $202 and $280, a level it first reached on February 19, 2025. During that period it faced challenges with market volatility caused by the tariff situation, but it bounced back, regaining ground and pushing toward its previous all-time high of $280. This kind of recovery serves as a reminder that even in tough conditions, patience and resilience often pay off.
Since then, JP Morgan Chase hasn’t just stopped at its old high. It has continued to climb, breaking into new record territory.
The stock is clearly forming a healthy trend of higher highs and higher lows, a classic sign of strength. In fact, after retesting the $280 level as support, it’s been moving confidently to new heights.
If there’s a takeaway here, it’s that consistency matters. Market trends can be unpredictable, but a disciplined approach, combined with an eye on key patterns like this can help you stay on course with confidence.
Looking Ahead
Currently, 60% of U.S. stocks are trading above their 200-day moving average, a slight drop from 61% last week. The Dow Jones, S&P, and Nasdaq have all recently hit record highs, and we expect market activity to pick up further as we head into September.
Keep it simple. Keep it Sublime.
The ST Team
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