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

On the monthly time frame, the S&P 500 had a strong finish in May, closing up 6.15% for the month. So far this year, the index is up 0.54%. If the bullish momentum continues into June, we could see those yearly gains increase.

However, there are key resistance levels ahead. Price needs to break above the $6000 mark, then the 2024 high at $6099, and finally the all-time high of $6147 set in February 2025. These three resistance levels are clustered in the same zone, which could act as a significant barrier. If price manages to break through them, the long-term bullish trend is likely to continue.

Last week also ended on a positive note, with the market closing up 1.94%. Currently, the S\&P 500 is trading within a wide consolidation range, with the high at $6147 and the low at $4835. This range has been in place since December 2024.

Despite being in consolidation, the market is still forming higher highs and higher lows. If this momentum holds, it could break through the resistance levels ahead.

Dow Jones

The Dow Jones closed May on a bullish note, rising just over 4 percent. However, for the year, it remains slightly down by 0.61 percent. Similar to the S&P, if the upward trend continues into June, the Dow could easily turn positive for the year. On the monthly timeframe, the next major resistance level for the Dow is the current all-time high of 45,073 dollars, which was set in December 2024.

Nasdaq 100

In May, the Nasdaq performed strongly, closing the month up by 8.98%. For the year, the Dow Jones is also up by 1.62%. On the Nasdaq’s monthly timeframe, resistance levels are clear. The first is the 2024 high at $22,133, followed by the all-time high from February 2025 at $22,222. However, with strong market momentum, these resistance levels could be easily surpassed, potentially leading to new record highs.

FTSE 100: 

The May candle closed bullish but didn’t manage to break above the all-time high of 8908 set in March. It did, however, close up by 3.26%. Looking back at the low formed in April during the tariff-related news, the price has risen 16.11% from that point—a strong move upward. Year-to-date growth is currently at 7.32%, showing steady progress. As we head into June, the focus remains on breaking above the all-time high and the 9000 level to continue this upward momentum.

Currently, the price has been consolidating between support at 7544 and resistance at 8908 for 60 trading days, starting from March 3. A breakout above or below this range will signal the likely direction for the FTSE moving forward.

PERFORMANCE REVIEW

Philip Morris International (PM)

Philip Morris International is performing well, showing a strong uptrend with significant gains in May. The stock closed May up by 5.41%, and for the year, it’s up nearly 50%. The next key resistance level to watch is around $200.

On the weekly chart, the price is above both the 50 and 200 simple moving averages. On the daily chart, the 20 and 50 simple moving averages are acting as support, and the price is also above the 200 simple moving average. The stock has been consistent, but we want to see it maintain a steady, linear trend by staying above the 20 simple moving average.

OUTPERFORMING ASSET FOR THE WATCHLIST

Amphenol (APH)

Looking at the monthly chart for Amphenol, the stock is in a clear long-term bullish trend. It had a strong performance in May, opening the month with a gap up from the previous month’s close—a sign of strong upward momentum. By the end of May, the stock was up 16.89%. For the year so far, it has gained 29.69%, showing a solid upward move. If this trend continues, the next major resistance level to watch is the $100 mark, a key psychological level.

On the weekly chart, the stock has recovered impressively from the volatility seen in April. Back then, the price dropped to $56, but since that low, it has rallied by 59%. This recovery reflects a strong upward trajectory following the earlier market turbulence, and we’ll be watching to see if the stock continues its climb.

Recently, the stock broke out of a long consolidation phase that began in June 2024. During this period, the price moved sideways until it broke above a significant resistance level at $79, which had been established by the high from January 24, 2025. Since breaking above this level, the stock has been rallying steadily, forming a strong and consistent upward trend. This momentum could potentially continue for several months or even over a year.

Looking Ahead

Currently, 39% of U.S. stocks are trading above their 200-day moving average, up slightly from 48% last week. The S\&P 500 has climbed 22% since its April 7 low, compared to 19% last week. Markets are showing solid recovery, and we’re adding more breakout stocks to our Asset Position Log for members to include in their portfolios. Once the S\&P 500 surpasses its all-time high, market opportunities are expected to grow even further.

Keep it simple. Keep it Sublime.

The ST Team

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