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

On the monthly time frame, this index is in a clear bull trend. We’ve seen consistent bullish candles since May, and September’s candle is shaping up strong so far.

Year-to-date, the index is up 11.95%, with September currently gaining 1.92%. It’s performing well, and we hope these trends continue through the rest of the year.

Historically, trends often form around September and October, and that’s exactly what we’re seeing now.

As of September, we’re observing a bullish move, with several stocks breaking out of consolidation and starting long-term bull trends. It’s important to stay alert and ready to take advantage of the opportunities in the market.

On the weekly time frame, the index saw a significant move up last week, closing with a 1.59% gain. On the daily time frame, Thursday showed a bullish candle, but Friday ended with a reversal candle. This suggests we might see a pullback, possibly down to the 20 simple moving average, currently at $6,474. If the price pulls back to support, then bounces and breaks above a previous high with a strong close, it would confirm the continuation of the bull trend. To confirm this, we’ll be watching for a pattern of higher highs and higher lows.

Dow Jones

On the monthly chart, the Dow Jones has gained 7.73% year-to-date, with September currently up by 0.64%. It is trading well above the 2024 high of $45,073, which previously acted as a strong resistance level.

Price struggled to break through this level until last month, when a significant breakout occurred. Now, in September, the price continues to move higher, distancing itself further from that former resistance, which has now become a support level.

Nasdaq 100

Year-to-date, the Nasdaq is up 14.66% on the monthly time frame. In September, it has gained 2.89%, marking a significant move.

This month, the Nasdaq is reaching new all-time highs and continues to trend strongly, especially following the bounce from the decline in April, when it hit a low of $16,542.

Since that low, the Nasdaq has climbed over 45% and is still rising. The goal is to see this upward trend continue, with a pattern of higher highs and higher lows.

FTSE 100: 

On the monthly time frame, the overall trend remains bullish. September currently has a bullish candle, but it has yet to break above August’s high, which also marks the all-time high at 8357.

For a continuation to the upside, price needs to break through this level by the end of the month. Year-to-date, the FTSE is up 13.58%, and September’s candle is currently up 1.04%.

On the weekly time frame, last week’s candle closed bullish, with a 0.82% gain. On the daily time frame, there was a strong push away from support on Thursday, followed by an upward move on Friday, but Friday ended with a reversal candle, closing slightly down by 0.15%.

The breakout above August’s high (specifically August 22nd) is still pending. A close above this all-time high will confirm the continuation of the bullish trend.

While Friday ended slightly lower, the overall bullish momentum remains intact. As long as this continues, we expect the price to move higher and eventually break above the all-time high.

PERFORMANCE REVIEW

TKO Group Holdings(TKO)

This stock shows a bullish long-term trend on the monthly chart. For September, the stock is up 6.79%, with a year-to-date gain of 42.45%. It’s trading comfortably above the $200 level, which could provide support if there’s a pullback.

The stock consistently moves upwards and recently broke out of a consolidation pattern. The initial high of this consolidation was $179 and was formed on February 13, 2025.

Although there was a false breakout in late June, the price re-entered consolidation, bounced off support at $152, and then broke out again. This time it peaked at $195.

After this peak on August 14, the price pulled back to retest the former resistance area, which then acted as support. It bounced from this level on August 20 and began moving higher.

Since the breakout of consolidation was to the upside, we expect a significant move in that direction, indicating the start of a potential long-term bull trend.

This trend could last for several months or even over a year. While the stock can surge, it can also be volatile at times. However, given its past performance, a strong upward move is likely.

OUTPERFORMING ASSET FOR THE WATCHLIST

Alphabet (Google) (GOOGL)

On the monthly time frame, the stock is showing a strong upward trend with consistent bullish candles since May.

While April showed a reversal candle with a bullish close, the candles from May onward have grown progressively larger.

Year to date, the stock is up 27.21%, with September alone up 13.1%. It’s performing well and hitting new record highs.

On the weekly time frame, last week saw a strong move up, closing with a 2.47% gain. The week before that also had a significant surge, and now we want to see the stock continue forming higher highs on lower time frames.

The stock had a notable gap up on September 3rd, closing 9.23% higher that day. Since then, it has continued climbing without the usual pullback to fill the gap.

Instead, it maintained its bullish momentum. However, the last three trading days have shown indecision candles, suggesting we might see a pullback to support soon before a potential continuation upward. The next support level to watch is $218.

For confirmation of a strong bull trend, we want to see a pullback followed by a break and close above the previous high. This stock has the potential to maintain its upward trend for several months or even longer.

Looking Ahead

Currently, 60% of U.S. stocks are trading above their 200-day moving average, the same as last week with no changes. The Dow Jones, S&P, and Nasdaq continue to reach record highs, and market activity is expected to increase as we go through the rest of the month.

Keep it simple. Keep it Sublime.

The ST Team

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