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
The S&P 500 remains in an overall bullish trend, with year-to-date gains of 6.06%. However, August has started with a pullback, with the index down 1.6% so far this month. July ended on a strong note with a 2.12% gain. On Friday, the S&P opened 0.81% lower and finished the day down 1.55%.
Currently, the index is 2.94% below its all-time high. Over the past week, the S&P declined 2.38%, closing with a bearish candle. On Thursday, the market hit a new record high at $6,427 before reversing into a bearish move. Friday started with a gap down and ended with another bearish close.
The S&P is now trading between key support levels at $6,129 and $6,302. This zone could provide support, and the strategy ahead is to wait for confirmation that support will hold. If the bull trend resumes, the first target would be filling the gap formed between Thursday and Friday, followed by breaking and closing above the all-time high. This would confirm a continuation of the long-term bullish trend.
Dow Jones
The Dow Jones is showing weakness this month, down 1.23% so far in August. In July, the index saw minimal movement, closing up just 0.09%. Despite significant intraday swings, it ended the month near the same level it started.
Year-to-date, the Dow Jones is up 2.45%, but August has started on a bearish note. A key level to watch is the breakout above the all-time high of $45,073. The expectation is for the price to find support on lower timeframes and rebound from this level, continuing the long-term upward trend.
Nasdaq 100
The Nasdaq is in an overall bullish trend but is going through a correction in August. So far this year, it has gained 8.33%, though it’s currently down 1.96% for the month.
The index is still above the 2024 high of $22,133. If it can hold support at current levels, the pattern of higher highs and higher lows is likely to continue.
FTSE 100:
The FTSE 100 has gained 10.96% so far this year, though August is currently down 0.7% as price appear to be correcting. July ended on a strong note, with the index up 4.26% for the month.
Right now, price are above the 9,000 level but may pull back to test it as support. On Friday, the index fell 0.71%, forming a bearish candle and approaching key support at the 9,000 mark.
On July 10th, the index broke through major resistance at 8,908, a level last reached on March 3rd, 2025. Since that breakout, price has trended upward, with the current movement likely just a correction. The next key target is a break above the July 31st high at 9,190, which would confirm the continuation of the upward trend.
PERFORMANCE REVIEW
The Bank of New York Mellon (BK)
Bank of New York Mellon has been performing exceptionally well, with the stock in a strong bullish trend. July ended on a high note, delivering gains of 11.43%. So far this year, the stock is up an impressive 29.91%, showcasing remarkable growth.
Currently, the stock is 3.25% below its all-time high as August brings a slight pullback. On June 18th, it broke through resistance around $90 and consolidated at this level for a few weeks before resuming its upward trend. Since then, the stock has steadily climbed, reaching new record highs and surpassing the $100 milestone on July 24th, with further bullish movement the next day.
On Friday, the stock saw a gap down, closing with a reversal candle near the key $100 support level. The outlook remains optimistic, with expectations of a bounce and continued long-term bullish movement. The next goal is to break and close above the July 30th high of $103, which would confirm the continuation of the upward trend.
OUTPERFORMING ASSET FOR THE WATCHLIST
Microsoft (MSFT)
Microsoft remains on a strong upward trend, with a solid year-to-date performance of 24.34%. While August is down 1.76% so far, this comes after a strong July, which ended up 7.14%.
Currently, the stock is 5.64% below its all-time high. It broke above key resistance at $468 in early June and has been climbing since, with a notable move last week. On July 31st, the stock hit a new record high of $555, boosted by earnings. However, Friday saw a bearish move that nearly filled the gap created between July 30th and July 31st. There’s a chance the price could dip further to fully close this gap before continuing its long-term upward trend.
The stock remains strong, and there’s optimism for further growth. The next key target is a breakout above the $555 all-time high from July 31st.
Looking Ahead
Currently, 44% of U.S. stocks are trading above their 200-day moving average, a drop from 54% last week. This decline comes as the market undergoes a temporary correction. Despite this, the overall market outlook remains positive.
Keep it simple. Keep it Sublime.
The ST Team
P.S. Answer 21 rapid-fire questions about your investing approach and then as if by magic, we will give you recommendations that are right for you and you’ll unlock your FREE Bonuses that will improve your investing results over the next 3 to 5 years.
