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.

Let’s get into this week’s newsletter!

US & UK INDICES OVERVIEW

S&P 500

January wrapped up with the S&P 500 up 1.37%. On the surface, that’s a solid, steady start. 

In January, the index actually tapped that big $7,000 round number, setting a new all-time high on the 28th at $7,002. But it couldn’t quite stick the landing. It pulled back to close at $6,945, which tells us that the sellers are still putting up a fight at these levels. 

So, what does this mean for you? Right now, the price is resting near support around $6,920. Think of this as a breather. If we see a strong bounce from here and a clean break back above that recent high, it’s a great signal that the bulls are back in charge. If not, we stay patient.

Don’t let the small daily fluctuations, like Friday’s 0.43% dip, distract you from the bigger picture. We’re in a “wait and see” zone. Keep an eye on that resistance; once we clear it decisively, we can look toward the next leg up with more confidence. For now, stay optimistic but stay disciplined.

Dow Jones

The Dow Jones is showing a more encouraging picture compared to the S&P 500, though the difference isn’t dramatic. Year-to-date growth stands at 1.73%, and the bullish January close is a positive sign.

This is a key detail because, unlike the S&P, which showed signs of reversal, the Dow’s momentum feels more stable.

It closed at $48,892, which is just $6 above the 2025 high of $48,886. While this is technically a new high, a six-dollar increase on a price of nearly $49,000 is insignificant. It’s a positive sign, but it’s not a strong breakout that indicates confidence in the market.

The Dow is at a crossroads. If it pushes higher, it opens the door to the highly anticipated $50,000 mark. That’s a milestone that will undoubtedly grab attention and headlines.

But if you’re looking for a decisive signal, this isn’t it, at least not yet. The hesitation around this resistance level suggests we might see some consolidation or even a pullback before the next big move.

If the Dow starts gaining momentum from here, it could spark the kind of move that gets everyone talking. But if not, don’t be discouraged, markets are rarely linear, and patience is often rewarded. Keep an eye on how it behaves around this level because what happens next will set the tone for the climb ahead.

Nasdaq 100

If you’re feeling a bit uneasy about the Nasdaq 100 lately, you aren’t alone. While the other major US indices showed some life in January, the Nasdaq lagged behind with a modest 1.2% gain.

But if there is one thing I’ve learned from years of watching these charts, it’s that the percentages don’t matter nearly as much as the “price action”, basically, how the market actually behaves.

Right now, the market is sending us a clear signal of uncertainty.

Both December and January gave us “indecision candles.” Currently, the 2025 high of $26,182 is the clear line in the sand. Until we see the price break that level convincingly, we’re essentially stuck in a waiting room.

If your portfolio is heavy on tech, February is a month for patience, not impulsive moves. We need to see real momentum return before jumping back in. Sometimes the best action you can take as an investor is simply to wait for the market to make up its mind before taking action.

FTSE 100: 

Across the Atlantic, the picture looks considerably brighter. The FTSE 100 started 2026 with real strength. By the end of January, we saw a year-to-date growth of 2.94%.

More importantly, it cleared the 10,000 mark, a major psychological hurdle. This wasn’t a lucky break; it was a confident close that shows real buying interest is back on the table.

The index has climbed nearly 15% since breaking its March 2025 high. When I see a sustained advance like this, it tells me the trend has genuine legs.

Even the weekly data backs this up: up 0.79% for the week and gaining ground right into Friday’s close. Usually, when the market pushes higher into the weekend, it’s a sign that investors are feeling confident.

We did hit a fresh all-time high of 10,277 on January 29th. The next practical step is to watch for a close above that level. Once that happens, the path for further gains looks very clear.

If you’re focused on the UK market, this is exactly the kind of encouraging setup you want to see. It’s a reminder that patience and watching for these clear signals really pays off.

PERFORMANCE REVIEW

Gilead Sciences (GILD)

Sometimes, a stock will move sideways for so long that we forget it’s even there. It just becomes part of the market furniture. Then, when we’re not looking, it takes off, and we’re left watching from the sidelines, missing out on potential gains.

I’ve seen it happen many times, and it looks like Gilead Sciences might be gearing up for that exact kind of move.

For the better part of a decade, this biotech stock was stuck in a range, bouncing between $56 and $123. A lot of investors gave up on it, and frankly, I can’t blame them. But then, something shifted. In November 2025, the price finally punched through that $123 ceiling. That was the first signal.

But what really caught my eye was the follow-through in January. The stock jumped over 15%, clearing not just the old high but also the 2025 peak of $128.

When a stock has been coiled up for that long, the eventual breakout can be powerful. The longer it consolidates, the more energy it builds up for the next leg up.

The momentum has continued. It gained over 8% one week, then another 4.4% the next. It even closed last Friday on a strong note, up another 1.72%.

From my experience, when you see a decade-long consolidation break like this, it’s often the start of a much bigger, more sustained advance.

This is a perfect example of a setup worth watching closely. It has all the signs of a stock waking up, and it’s definitely one I’ll be keeping on my watchlist in the coming months.

OUTPERFORMING ASSET FOR THE WATCHLIST

Coca-Cola (KO)

Sometimes, the best opportunities pop up where you least expect them. When I think of profitable stocks, Coca-Cola doesn’t usually come to mind.

It’s always felt like a steady, reliable, and slow investment. But recently, slow started to look a lot more interesting.

After 352 trading days, that’s almost a year and a half of moving sideways, Coca-Cola finally broke out of its holding pattern. All that time spent consolidating has built up a lot of potential energy.

The breakout occurred on Friday, January 30th, when the stock decisively pushed above its 2025 high of $74. The stock saw solid growth in January, and that final push on Friday was a strong signal.

When I see a breakout like this after a long wait, the ideal scenario is simple: I want the price to keep climbing, pull back slightly without falling below the breakout level, and then push to a new high. This pattern of higher highs and higher lows shows it’s a real trend change, not just a brief spike.

Earnings are scheduled for February 10th. Earnings reports can be a major catalyst. They can either pour fuel on a new trend or create enough volatility to shake things up. It’s definitely an event to be aware of if you’re looking at this stock.

Looking Ahead

The percentage of U.S. stocks trading above their 200-day moving average has decreased from 64% last week to 60%. Despite this decline, the long-term upward trend in the indices suggests it is likely to rise again over time.

Keep it simple. Keep it Sublime.

The ST Team

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