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

April has been a good month for the S&P 500 so far. The index has climbed 4.42%, which is great to see. We’re still slightly down for the year, by about 0.42%, but if this momentum continues, we could close that gap soon.

I’m keeping a close eye on two key levels. The first is the 2025 high of $6,945, and the second is the all-time high of $7,002 from January. That $7,000 mark is a big one. If we can break through it with confidence, it could signal a major rally for US markets.

We saw a strong push this past week with a 3.56% gain, which is exactly what we needed to get closer to these levels.

The index did drop a little on Friday, down 0.11%, but that’s not something to worry about. It was just a small dip after a strong week, and the price is holding up well. The big question is whether this recovery can last.

So, what should you be looking for? A clean break above $7,000. If we see that, followed by a pattern of higher highs and lows, it will confirm this is not a fake breakout.

Dow Jones

The Dow Jones is following a similar path to the S&P. It saw a nice 3.4% gain in April, but it’s still down 0.31% for the year. Just like the S&P, what happens next for the Dow really depends on whether it can break through some key resistance levels.

The first hurdle it needs to clear is the 2025 high of $48,886. If it can clear that, the next goal is the all-time high of $50,512 set back in February.

It will take a good amount of buying to push past these points. But if the market keeps up the momentum we’ve seen in April, I believe those targets are well within reach.

Nasdaq 100

The Nasdaq 100 has been the strongest of the three US indices this month, climbing 5.8% in April. Despite this, it’s still slightly down for the year.

The Nasdaq’s 2025 high and its all-time high are the same at $26,182. If the price can push past this point and stay there, we can be more confident that the long-term upward trend is back on track.

It’s also helpful to remember that the Nasdaq often moves in the same direction as the S&P and the Dow. So, if we see a broad market breakout, it’s likely to lift all three indices together.

FTSE 100: 

While US markets are still trying to find their footing for the year, the FTSE 100 is telling a much more positive story. It’s up 6.74% year-to-date and has gained 4.17% in April alone, bouncing back nicely from a tough March.

I often look for key psychological levels in the market, and the 10,000 mark seems to have been one of them. It provided a solid floor for the index, along with the previous high from November 2025 at 9,930. The price found support in that zone before climbing back up. Last week, it gained a steady 1.57%.

The next big milestone to watch for is the all-time high of 10,934 from February 27th. If we see a confident break above that level, it’s a strong signal that the bull trend is back in control.

After a very strong push on Wednesday, the market seemed to pause and catch its breath on Thursday and Friday. This kind of sideways movement is completely normal after a big move. The index is gathering energy for its next move up.

Given its positive performance this year and its proximity to the all-time high, the FTSE 100 is in a strong position as we move through the rest of April.

PERFORMANCE REVIEW

Applied Materials (AMAT)

Applied Materials has been on quite a ride over the last year. If you were holding the stock between July 2024 and April 2025, you would have seen it drop more than 51% from its peak. That kind of prolonged correction can test anyone’s patience.

But since hitting that low in April 2025, the stock has roared back with a 222% gain. It’s a powerful reminder of why we follow the trend.

The momentum has carried into 2026. So far this year, the stock is up 55.45%, with April alone contributing a 16.88% gain. The weekly chart shows a commanding 14.64% move.

If we zoom in on the daily chart, we can see a classic breakout pattern. For 30 trading days, from late February to early April, the price was stuck in a tight consolidation range.

Then, on Friday, it finally broke out. We did see a reversal candle at the close, which tells me there’s a chance the price might dip back to test that old resistance zone before it continues its climb.

Alternatively, it could find support right above the breakout level and keep going. Either way, the upward trend is still in play. Friday’s close was up 0.42%, confirming the positive move despite the pullback during the day. This is a stock worth watching.

OUTPERFORMING ASSET FOR THE WATCHLIST

Keysight Technologies (KEYS)

While Applied Materials tells a story of recovery, Keysight Technologies is all about acceleration. The stock has surged 59.55% year to date, making it the top performer on our list this week. So far in April, it has gained an impressive 14.81%.

Last week was particularly strong. The stock gapped up on Wednesday, breaking free from its recent consolidation, and closed the week up 11.31%.

It then set new record highs on both Thursday and Friday. It’s a strong signal that the upward move has real momentum.

For a while, the stock was trading in a range between a high of $317 (on March 2) and a low of $264 (on March 9). After testing that lower boundary again on March 30, the momentum shifted, leading to the breakout we just saw.

Now that the price is trading above that old range, the goal is for it to stay there and continue its uptrend by making higher highs and higher lows. Friday’s gain was modest at 0.38%, but what’s important is that it held its ground in record-high territory, confirming the strength of the breakout.

Looking Ahead

More U.S. stocks are now trading above their 200-day moving average, with the percentage rising from 42% to 47%. This is an early sign of a market recovery. We’ll have a clearer confirmation when the indices surpass their all-time highs.

Keep it simple. Keep it Sublime.

The ST Team

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