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.
This week, markets aren’t in a rush; we’re seeing sideways movement that, while sometimes tedious, can set the table for major breakouts when you least expect them. By focusing on key support and resistance levels, you can filter out the distraction and prepare for the moves that matter.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
S&P 500
The S&P 500 continues to hold its bullish posture. Since the beginning of 2026, the index is up 8.22%. May has added another 2.77% so far, with the latest big milestone coming on April 15, when the price broke and closed above a previous all-time high of $7,002.
Historically, these all-time high breakouts on the S&P 500 can set the stage for further surges.
The index gained a slight 0.13% this past week. However, Friday’s session saw a 1.24% dip, which could be the start of a healthy correction. The key is to know when a pullback is an opportunity rather than a sign of weakness.
The major support level to watch is around $7,002. If the price drops but stays above this area, it indicates that former resistance has turned into new support. On the other hand, the resistance level is the recent high of $7,517 from May 14. A decisive move above $7,517 would signal a continuation of the bull run, potentially offering a good opportunity to increase positions or hold for more gains.
The best strategy is to be patient. If the S&P dips, stabilises above its previous high, and then confidently breaks past $7,517, we can expect the trend to continue upward.
Dow Jones
The Dow Jones offers a different twist this week, blending stability with some signs of fatigue. Historically, the Dow has been a textbook example of why patience pays off—its uptrends often take time to mature but tend to stick around longer than you’d expect.
This year, the Dow is holding above its 2025 high of $48,886, and it set a new all-time high in February 2026 at $50,512, a milestone that gave many investors renewed optimism. However, since then, momentum has slowed.
So far in 2026, year-to-date growth is sitting at a modest 3.05%. In May, we’re seeing the Dow register a small decline of 0.24%.
Right now, price is hovering just under the $50,000 round number, a psychological level that often acts as a barrier.
Support levels worth watching remain near that 2025 high at $48,886. If buyers step in and the index can stay above this level, it indicates there’s still underlying strength.
On the flipside, $50,000 is acting as tough resistance, with the real test being whether the Dow can decisively break above it. For the uptrend to truly continue, we’d like to see the index not only clear this important level but also go on to form higher highs and higher lows in subsequent weeks.
Nasdaq 100
The Nasdaq 100 is living up to its reputation as a leader during bull cycles. Year-to-date, the index has posted a substantial 15.35% gain, outperforming most other major indices, and May alone has added another 6.09%.
The next major hurdle is the $30,000 mark. This round number will likely be a significant resistance point. If the price breaks through this level with confidence, we could see a rapid upward move, similar to past breakouts when the Nasdaq has cleared similar milestones.
Looking ahead, the best step is a mixture of caution and readiness. Strong trends like this are where savvy investors can build significant gains, but only if you trust your plan, manage your risk, and let the market confirm its intent.
FTSE 100:
If you look back over the past year, the index enjoyed a strong run up until February 2026, when it peaked at its current all-time high of 10,934.
Since then, however, the story has changed, rather than an immediate follow-through, price action has shifted into a long phase of sideways movement.
May’s candle captures this hesitation, currently down 1.77%, while the year-to-date gain stands at a modest 2.66%.
The past week was similarly quiet, closing with a dip of 0.37%, and Friday saw a slightly steeper slide at 1.71%.
But these short-term fluctuations are best viewed in context: the FTSE is stuck in a well-defined range, boxed in by strong support around 9,670 and the overhead resistance at 10,934. For now, this broad consolidation keeps many traders on the sidelines, waiting for the market to tip its hand.
Breaking down below 9,670 would likely trigger a deeper correction. Conversely, a clean break and close above 10,934 would be the technical “green light” for a new bullish leg.
PERFORMANCE REVIEW
eBay (EBAY)
eBay is starting to shake off its old reputation as a choppy, inconsistent performer and replace it with signs of real momentum.
In the past, eBay often kept investors guessing, with long periods of sideways drifting and frequent deep corrections that made holding through the noise a test of patience.
Long-term observers of eBay’s stock know it has been quite volatile. Rallies were often followed by frustrating pullbacks, and the stock would frequently spend months stuck between clear support and resistance levels.
That all changed recently. After years of being stuck in a consolidation zone, first between $35 and $81 from late 2021 to mid-2025, and then between $78 and $101 into early 2026, eBay finally had a convincing breakout in April.
Not only did the price break above the $100 round number, but it quickly turned this old resistance into solid new support, signaling that market sentiment had genuinely shifted.
Year-to-date, eBay has posted an impressive 33.33% gain, with May alone providing a solid 12.22% rise. This past week, the stock continued its upward march, climbing 7.84%, and Friday’s session capped things off with a 2.55% gain.
What’s even more compelling is how eBay has held its new support levels. The previous resistance level at $100, which used to be a ceiling for buyers, has now become a solid floor, aligning with the previous consolidation high.
If eBay continues to hold above $100, the risk-reward tilts in favor of those willing to stick with the trend. Key levels to watch are continued respect of the $100 support and any test of new highs.
OUTPERFORMING ASSET FOR THE WATCHLIST
Nvidia (NVDA)
Nvidia has a history of strong rallies followed by periods of sideways movement or pullbacks. This cycle appears to be repeating. The stock has seen significant gains since the start of 2026, with a year-to-date growth of 20.82%. It has recently entered a period of consolidation and a mild pullback, which often signals an upcoming opportunity.
May has already added 12.9% to Nvidia’s climb, and with price staying comfortably above the 2025 high of $212, the long-term picture still favors a bullish outlook.
Last week, momentum continued with a 4.7% jump, reinforcing Nvidia’s habit of “pausing, then pushing higher.” That said, Friday’s 4.42% pullback reminds us that no stock, no matter how strong, rises in a straight line.
Pay close attention to how the price reacts at nearby support levels. Look for buying interest if the price drops back to key points, like the breakout level past $212 or the area just above $220. If buyers enter the market and the price stabilizes around these levels, it could signal a new base for the next upward move.
Keep an eye on the May 14 high of $236 as a key resistance level. If the stock breaks and closes above this price, it’s a strong signal the upward trend will continue, likely attracting new buyers and pushing the stock to new highs. On the other hand, if it fails to find support and drops below $212, we could see Nvidia fall back to price ranges from late 2025 and early 2026.
The biggest variable is the upcoming earnings report, due out on May 20. These announcements can create short-term volatility—sometimes they cause a sharp increase, other times they’re just noise, and occasionally they lead to a significant price correction. My strategy is to avoid making big bets before earnings and wait for the market’s reaction. Given Nvidia’s strength leading up to this report, a positive market response could spark the next rally, particularly if the broader tech sector continues to perform well.
Looking Ahead
This week, the number of U.S. stocks trading above their 200-day moving average fell from 55% to 50%. The market might be going through a short-term correction, but we expect this number to rise again throughout the rest of May once the trends resume.
Keep it simple. Keep it Sublime.
The ST Team
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