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

June has been a positive month so far, with the S&P 500 up by 1.4%. It’s a good start for the month. For the year, the S&P 500 has seen small growth, gaining 1.94%. While the increase is modest, it’s showing signs of steady improvement, especially after recovering from the declines we experienced in April. At the moment, we’re seeing some strong upward movement.

The market closed at the $6,000 level, which is a key psychological resistance point. If it can break through this level, the next resistance will be at the 2024 high of $6,099. Beyond that, the all-time high, set in February this year, is at $6,147. Clearing these hurdles would signal the continuation of a long-term upward trend for the S&P 500.

Dow Jones

The Dow Jones is up for June, currently rising by 1.23%. For the year, it’s showing a smaller gain of 0.51%. However, it’s recovering well from the declines seen in April and now needs to keep moving upward toward its all-time high of $45,073.

Nasdaq 100

The Nasdaq is showing bullish performance in June, currently up by 1.98%, just shy of the 2% mark. For the year, it has gained 3.54%, indicating steady growth. To continue its upward trend, the Nasdaq needs to break above its 2024 high of $22,133. The all-time high, set in February this year, is slightly higher at $22,222. A breakout above these levels could signal further upward momentum.

FTSE 100: 

June has seen a small bullish move so far, continuing the momentum from last month where the FTSE closed up 3.28%. The price is climbing higher and is now approaching the all-time high of 8908, set in March this year. If it breaks above this level, the next target is the 9000 round number, though it may not pose strong resistance. The major resistance to watch is further up at the 10000 round number.

Looking at the numbers, the FTSE has risen by 0.73% this month, and for the year, it’s up 8.11%—solid growth so far. Friday closed strong for the FTSE with a bullish move, and it now needs just a 0.8% increase to hit the all-time high. Once that high is broken, we anticipate a continuation of the bullish trend.

PERFORMANCE REVIEW

Mastercard (MA)

Mastercard has shown strong performance over the years with clear upward trends. Back in October 2016, once the price broke above $101, it climbed steadily, reaching a high of $402 in April 2021—an impressive rise of 294%.

In November 2023, the stock broke above this key resistance level of $402 and has since continued its upward trend. As of now, the price has climbed to $590, marking a 47% increase. The stock has made solid gains, currently up 0.86% for the month and nearly 12% for the year. The bullish momentum appears strong and could continue for some time.

In January 2024, Mastercard broke its previous high of $537 and has been rising steadily ever since. The next level of resistance to watch is the $600 mark. While this may not be a significant psychological barrier, it could temporarily slow the price’s upward momentum. However, given Mastercard’s strong historical trends, the stock has considerable potential to maintain its positive performance.

OUTPERFORMING ASSET FOR THE WATCHLIST

Nasdaq (NDAQ)

The long-term trend for the Nasdaq stock appears bullish. Looking at its performance in June so far, the stock is up 2.54% for the month and 10.72% for the year. This month, it broke above the 2024 high of $83, a significant level. For the bullish momentum to continue, we want the price to stay above $83, using it as support if it pulls back. Ideally, we also want to see a pattern of higher highs and higher lows on lower timeframes to confirm upward momentum.

The stock has recovered well since hitting a low back in April during the tariff situation, climbing 32% from that point. Previously, it formed a high of $83 on November 29, 2024, before entering a consolidation phase that lasted 128 trading days. It only recently broke out of this consolidation on Friday. Since this was a lengthy consolidation, we need to confirm that this breakout is genuine and not a false move. A clean move higher, beyond the consolidation zone, will confirm the breakout and make it less likely for the price to fall back into that area.

Once confirmed, the stock is likely to trend upwards for several months, or even more than a year. This presents a great opportunity for potential gains. The next level of resistance is at the $90 mark, with the major $100 level beyond that. To hit $100, the stock would need to rise another 17%, providing ample room for profit before potentially encountering resistance at this psychological level.

Looking Ahead

Currently, 43% of U.S. stocks are trading above their 200-day moving average, up from 39% last week. The S&P 500 has risen 23% since its April 7 low and is now just 2.44% away from reaching its all-time high. Markets are showing strong signs of recovery, and we’re adding more breakout stocks to our Asset Position Log for members to consider for their portfolios. Once the S&P 500 hits a new all-time high, even more market opportunities are expected to emerge.

Keep it simple. Keep it Sublime.

The ST Team

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