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
We’re seeing a bullish trend developing for June. So far this month, the index has risen by 1.01%. However, there are still key resistance levels to overcome. The first is the $6000 round number, and the second is the 2024 high of $6099. Earlier this year, price saw a fake breakout above this high in January and February, followed by a significant decline in March and an even larger drop in April. Despite this, April ended with a strong recovery, and May brought notable growth as well. Heading into June, we’re looking for continued upward momentum. Year-to-date, the S&P 500 is up by 1.52%.
On June 11th, price hit a high but then pulled back toward the 20 simple moving average (SMA). We’re now watching to see if the 20 SMA can provide support and push the price higher. Currently, price is hovering near the $6000 round number. It broke above this level on June 10th but has since retested it, aligning with the 20 SMA. The next move we’re waiting for is a breakout above the all-time high of $6147, which was set in February 2025.
It’s important to note that longer consolidation periods require caution. We need to see a clear breakout above the all-time high, followed by a pattern of higher highs and higher lows, to confirm a continuation of the bullish trend.
Dow Jones
June has been a mixed month so far, with the Dow Jones slightly down by 0.08%. For the year, the index has also declined by 0.75%.
Despite this weakness, we’re watching for a potential bounce from support levels to resume the long-term upward trend. If momentum picks up, the next target is to break the all-time high of $45,073, set in December 2024.
Nasdaq 100
The Nasdaq is performing well in June, with a 1.18% increase so far this month. For the year, it has gained 2.90%. However, it still hasn’t surpassed its all-time high. To get there, it first needs to break the 2024 high of $22,133, followed by the February 2025 all-time high of $22,222. Clearing this strong resistance zone could mark the beginning of a major bullish trend.
FTSE 100:
We’re looking at the monthly timeframe and noticing a shift in the June candle. Previously, it was bullish, but now it’s showing signs of indecision. So far, the monthly growth is just 0.09%, while the FTSE 100 is up 7.42% for the year. Prices have pulled back slightly.
If the price pulls back to a support level, it should eventually bounce and continue moving higher. What we’re ultimately waiting for is a breakout. If the long-term trend resumes, the key level to watch is the all-time high from March at 8908.
For now, we’re watching for a bounce at support, followed by upward movement and, ideally, a breakout above the resistance. From there, we’ll look for confirmation of a bull trend continuation with higher highs and higher lows.
PERFORMANCE REVIEW
Microsoft (MSFT)
Microsoft is showing strong bullish momentum this June on the monthly chart. So far, June’s candle is up 3.81%, and for the year, Microsoft has gained 13.23%, performing exceptionally well. The stock has broken above its 2024 high of $468 this month, and we expect the upward trend to continue. We’re watching for potential buying opportunities, provided our proprietary checklist is met. The next key resistance level is the $500 mark.
On the weekly chart, there was a reversal candle last week, which suggests a possible pullback. This is expected after breaking above an all-time high, as pullbacks are common in such scenarios. The next resistance level to watch remains the $500 round number.
OUTPERFORMING ASSET FOR THE WATCHLIST
Nasdaq (NDAQ)
This stock has performed well in the past and shows potential for future growth, pending confirmation of a trend continuation pattern. Currently, the stock is up 3.06% for the month, while the Nasdaq has risen 11.49% this year. Overall, the stock is performing strongly, and we expect further upward movement. The next key resistance level to watch is the $100 mark.
On the weekly timeframe, last week closed with a reversal candle, following an indecision candle the week before. Momentum appears to be slowing, so we’ll need to see if the stock finds support and continues upward or if it maintains its current trend without pausing.
What we’re looking for is steady upward movement, forming a pattern of higher highs and higher lows along the way.
Looking Ahead
Right now, 41% of U.S. stocks are trading above their 200-day moving average, showing strong signs of market recovery. We’re adding more breakout stocks to our Asset Position Log for members to consider. If the S\&P 500 reaches a new all-time high, even more opportunities are likely to follow.
Keep it simple. Keep it Sublime.
The ST Team
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