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
While the long-term trend for the S&P 500 remains bullish, the market appears to be taking a brief pause right now. We’ve seen a solid 16.08% climb since the beginning of the year, which is great.
However, after a strong November, December has pulled back slightly by 0.32%. Think of it as the market catching its breath after a good run.
Since late October, the price has been moving sideways. It’s bouncing between the all-time high of $6920 and a support level at $6550. I’ve learned not to worry too much during these consolidation phases as it’s often just the market processing its recent gains.
We saw the index bounce off that support level in late November, and now it’s sitting comfortably just below the all-time high.
Even though last Friday closed on a bearish note (down 1.07%), the bigger picture still looks positive to me. What I’ll be watching for is a clear break and close above that October high of $6920. If that happens, it’s a positive sign that the bull trend is poised to continue moving upward.
Dow Jones
The S&P 500 might be cooling off, but the Dow Jones is stealing the spotlight right now. It’s hitting new record highs and outpacing other major indices.
So far this year, the Dow has grown an impressive 13.9%, with December alone showing a gain of 1.55%. Compare that to the hesitation we’re seeing elsewhere, and it’s clear the Dow is in a strong position.
If the upward trend continues, the next big target is the $50,000 mark. Now, this is a major psychological level, and it could act as a tough spot to break through, but it’s also a milestone worth keeping an eye on. A break above this level should result in a continuation of the long-term bull trend.
Nasdaq 100
The Nasdaq 100 has been the strongest major index this year, with a year-to-date gain of 19.91%. However, like the S\&P 500, it saw a slight reversal in December, dropping 0.94%.
While the long-term trend is still positive, investors are waiting to see if the Nasdaq will follow the Dow Jones and reach new record highs. Many expect the tech-focused index to overcome this brief dip and continue its strong performance.
FTSE 100:
The FTSE 100 has gained an impressive 18.06% so far this year, despite a December pullback of 0.74%.
From its all-time high, the index has seen a relatively small correction of 2.83%, which should remain limited if key support levels hold.
Last week’s reversal candle suggests the potential for a rebound
The next key level to watch is the November 12th high of 9930. A break and close above this would confirm the continuation of the upward trend.
While Friday’s candle closed bearish, down 0.56%, the overall structure indicates this may just be a pause before the next move higher.
PERFORMANCE REVIEW
American Express (AXP)
American Express is delivering impressive returns, outperforming major indices with a year-to-date growth of 28.9%.
The stock remains in a strong long-term uptrend, and December is shaping up to be another positive month with gains currently at 4.73%.
Last week, the stock reached a new record high and closed up 3.3%, indicating that momentum remains on the bulls’ side. However, Friday saw a slight dip of 0.61%, a minor pullback that doesn’t change the overall positive outlook.
In November, the stock slowed down after October’s strong momentum, but December seems to be regaining that strength. While the stock’s growth isn’t always linear, its steady long-term upward trend has rewarded patient investors.
OUTPERFORMING ASSET FOR THE WATCHLIST
General Motors (GM)
General Motors has made an impressive move after spending years in a consolidation phase. Breaking above its previous all-time high of $67, set back in January 2022, GM has finally shaken off that multi-year sideways trend.
Since the breakout in October 2025, the stock has climbed 20.35% in just a few months. That kind of momentum isn’t something you see every day.
To put it into perspective, the stock’s year-to-date growth is a remarkable 51.85%, making it a standout performer in the market. And December alone has already added 10.02%, a sign that the breakout energy isn’t slowing down yet.
If you’ve ever watched a stock climb out of a long consolidation period like this, you’ll know it often leads to a sustained uptrend. Years of built-up pressure finally get a chance to release, fueling impressive growth.
For investors, this kind of breakout is a reminder of the importance of patience and timing. It’s not just about holding on through the quiet phases but also being ready to act when momentum shifts. GM’s recent performance is a great example of how powerful a well-timed breakout can be.
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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