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 is still strong in this bull market. So far this year, the index is up 14.18%, and October has started with a small 0.41% gain. Last week was good, with a 1.09% increase, pushing the index to new record highs.
Friday was interesting. The day ended with only a 0.01% gain, creating a “reversal candle” which might mean a short correction is coming. If so, there’s good support around $6,630, which is near the 20-day moving average.
The price has moved very clearly since it broke past the key resistance level of $6,147 on June 27th. Since then, it’s followed a classic pattern of making higher highs and higher lows, with support levels consistently holding up when tested.
Going forward, as long as this pattern continues and the index bounces from support without falling below past lows, the long-term upward trend should stay in place.
Dow Jones
The Dow Jones is up 9.91% year-to-date and has started October with a 0.78% gain. The focus is now on continuing this positive momentum throughout the month.
To confirm the long-term upward trend, the index will need to keep setting higher highs and higher lows on shorter timeframes.
Nasdaq 100
The Nasdaq 100 is leading the major indices, up 17.96% year-to-date. October has started strong with a 0.43% gain so far. After last month’s solid performance, investors will be looking to see if October can keep up the positive momentum.
The early signs are good, with growth already appearing in the first week. All three major indices are currently showing bullish signs, suggesting a good market for finding strong stocks to add to portfolios.
FTSE 100:
The UK’s main stock market index has had a great year, up 16.13% so far. October started strong, already up 1.51% just a few days in. Last week was particularly strong, with the index rising 2.22% and moving beyond its recent trading range of 9,107 to 9,357.
Friday continued this positive trend with a 0.67% gain. It’s encouraging to see how the FTSE 100 has changed since its pandemic low in March 2020.
Market dips and periods of sideways trading are now shorter and less severe, which suggests a stronger overall upward trend. This smoother price movement points to healthier market behavior.
The next big target is the 10,000 mark. If this pattern holds, we can expect even smaller pullbacks ahead, further confirming the strength of this long-term bull market.
PERFORMANCE REVIEW
Robinhood Markets (HOOD)
Robinhood’s stock has had a dramatic journey since its market debut in July 2021. After an initial rally of 125% to $85, the stock dropped sharply, losing 91% of its value by June 2022.
Following a long period of consolidation, February 2024 marked a turning point when the stock crossed $12 and began a strong upward trend.
The growth has been staggering. From its all-time low, Robinhood has surged over 2,000%. So far this year, the stock is up an impressive 299.01%
September alone saw a 37.89% gain, and October has already added another 3.83% in just the first few days. Last week was particularly strong, with a 22.08% jump, including a 2.04% increase on Friday.
The stock continues to hit new all-time highs, now approaching $150. If it breaks that level, the next psychological target of $200 could be within reach.
Since rebounding off the $31 support level in April 2025, the stock has climbed an incredible 383%. Momentum remains strong, with a consistent pattern of higher highs and higher lows.
As long as pullbacks remain above key support levels and the stock continues to reach new highs, this impressive upward trend is likely to persist.
OUTPERFORMING ASSET FOR THE WATCHLIST
Seagate Technology Holdings (STX)
Seagate is having a standout year in the market. The stock is up an incredible 192.89% year-to-date, with October already contributing a solid 7.09% gain. This momentum follows an impressive 40.78% jump in September.
The turnaround started in June when Seagate broke past the high of 2024 at $115. Since then, every monthly candle has closed higher, showing consistent strength. Last week added to this with a strong 16.22% gain, though Friday saw a small 0.77% dip as some investors took profits.
After such a rapid climb, the stock seems to be entering a correction. Support could appear around the $220 mark, though it might stabilize sooner.
We’ll be looking for the stock to find a stable support level, then bounce and continue its upward trend. Reclaiming the October 2nd high of $264 would be a key indicator.
If the upward trend continues, the next major resistance level is the $300 mark. The overall picture is one of strong, consistent growth throughout the year. While some consolidation is expected after big moves, the trend remains clearly bullish.
Looking Ahead
Sixty percent of U.S. stocks are currently trading above their 200-day moving average, unchanged from last week. The Dow Jones, S&P, and Nasdaq are at record highs, and market activity continues to pick up this month.
Keep it simple. Keep it Sublime.
The ST Team
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