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 a strong bullish trend, with August showing positive momentum at 2.01% growth. Year-to-date, the index has gained an impressive 9.95%, reflecting consistent strength throughout 2025.

Currently, the S&P 500 is trading above the 2024 high of $6,099, confirming a breakout into new territory. The latest pullback started on August 15 after the index hit a high of $6,481. It found support around $6,370 and has since rebounded from that level.

On Friday, the index performed strongly, closing up 1.52%, though it remains below the August 15 all-time high of $6,481. A break and close above this level would confirm a continuation of the bullish trend and point to further upside.

The current momentum indicates the S&P 500 is well-positioned for continued growth. The pattern of higher highs and higher lows remains intact, and the index has consistently held key support levels during pullbacks, signaling solid underlying strength.

Dow Jones

The Dow Jones has hit an important milestone, breaking past its previous all-time high and 2024 peak of $45,073, set in December 2024. This is a key development, as the index had struggled to overcome this resistance level for a long time.

August was particularly strong, with the Dow gaining 3.4% for the month. So far in 2024, the index is up 7.26%. Breaking out of this long-term consolidation zone suggests there could be significant upward momentum over the long term.

With all major indices now reaching new record highs, the market is firmly in bullish territory. The Dow’s breakout means the three main indices are now showing patterns of higher highs and higher lows, which often signals stronger market moves ahead.

The next step is to confirm this trend on the daily chart, with a continued pattern of higher highs and higher lows. If this happens, the breakout could lead to substantial gains, especially after such a prolonged consolidation period.

Nasdaq 100

The Nasdaq remains in a long-term bull trend, showing a 1.21% growth in August. So far in 2025, it has delivered an impressive year-to-date gain of 11.83%.

Earlier in the year, the Nasdaq hit new record highs, and now, with the Dow Jones also reaching new highs, all major indices are aligned. This alignment creates a strong bullish setup, with all indices moving to new record highs simultaneously.

The Nasdaq’s steady performance throughout 2025, combined with this alignment across major indices, points to continued market strength.

FTSE 100: 

The FTSE 100 showed strong performance in August, gaining 2.07% for the month and 14.05% year-to-date. The index remains in a long-term upward trend, with momentum staying solid through August.

The next major resistance level is at the 10,000 mark, leaving plenty of room for further growth. Last week ended on a bullish note, creating positive momentum for the week ahead. However, Friday’s session closed with a reversal candle, signaling a possible correction or pullback toward the support level around 9,161. This level has held firm since the FTSE broke above the key resistance at 8,908.

The 8,908 resistance level was established from the March 3, 2025 high and was only surpassed on July 10. Since that breakout, the FTSE has maintained a steady upward trend, suggesting the bullish momentum is intact.

Looking ahead, any pullback is likely to find support at key levels, allowing the index to rebound and continue its climb toward the 10,000 target. Overall, the trend remains bullish with potential for further gains.

PERFORMANCE REVIEW

Mastercard (MA)

Mastercard has shown strong long-term growth and solid historical performance, with consistent upward trends and minimal corrections. Between June 2016 and February 2020, the stock displayed particularly steady gains.

This August, Mastercard’s performance has been strong, up 5.74% for the month and 13.75% year-to-date. The stock is hitting new record highs and is currently trading just below the $600 mark, suggesting potential for further growth.

On Friday, the stock made a notable move with a gap-up candle that broke above the June 11 high of $594. While this breakout is a positive technical sign, further upward momentum is needed to fully confirm the continuation of the bullish trend.

Confirmation would require the stock to move higher, pull back, and then break and close above another previous high.

Historically, Mastercard has maintained a consistent upward trajectory, even when its trends have not been perfectly linear. As long as the long-term trend remains strong, the stock has significant potential for continued growth. The current setup points to the possibility of another major upward move.

OUTPERFORMING ASSET FOR THE WATCHLIST

Nvidia (NVDA)

Nvidia is in a long-term bull trend, though August shows signs of a potential reversal with a minimal gain of just 0.07%. Despite this, the stock’s yearly performance remains strong at 32.54% year-to-date.

Currently, Nvidia is trading above its 2024 high of $152, which serves as a key support level. However, the stock’s current price is well above this point, leaving room for potential pullbacks without disrupting the overall upward trend.

Last week ended with a reversal candle, marked by a long wick down to $168. However, the stock rebounded strongly by the end of the week, gaining over 5%, a sign of underlying strength despite volatility.

Friday saw a bullish move, though it didn’t reclaim key resistance levels. The all-time high, set on August 12, is $184. A break and close above this level could trigger further upward momentum.

A major catalyst is on the horizon with Nvidia’s earnings report scheduled for Wednesday, August 27. This could significantly influence the stock, either positively or negatively. A strong report may lead to a breakout above the current high.

Nvidia’s ability to recover from midweek weakness and close on a strong note reinforces its underlying momentum, positioning it well for a potential push higher.

Looking Ahead

Currently, 61% of U.S. stocks are trading above their 200-day moving average, up from 53% last week. With the Dow Jones recently reaching new record highs, we anticipate strong market activity to increase as summer wraps up.

Keep it simple. Keep it Sublime.

The ST Team

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