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 has shown impressive resilience this year, navigating a tricky market environment with steady growth. So far in 2025, the index is up 16.81%, a strong performance that reflects its ability to handle challenges.

December has had a quiet start, with a modest gain of 0.31%, including 0.19% on Friday. However, Friday’s reversal candle hints that we might see some near-term hesitation.

It’s natural for the market to pause after a strong run. It’s like catching your breath before moving forward.

Right now, all eyes are on the all-time high from October 2025, sitting at $6,920. Breaking above this level would confirm that the S&P 500’s uptrend is still alive and kicking, paving the way for further progress.

But until that happens, the index is stuck in a range, bouncing between $6,550 (support) and $6,920 (resistance). Think of this range as a holding pattern, time for the market to consolidate, regroup, and build strength for the next big move.

The $6,550 support level, which has held firm since October 10th, is key. As long as this level holds, the bias remains positive.

It’s worth remembering that earlier in 2025, the index cleared a major hurdle at $6,147, the February high. That breakout set the stage for the rally that pushed us to October’s all-time high. It’s a reminder of how markets work, step by step, breaking past one resistance to aim for the next.

Right now, patience is essential. Consolidation phases like this are a normal and healthy part of the market cycle.

If the S&P can maintain its position above $6,550, there’s a good chance we’ll see an eventual breakout to new highs. For now, staying focused and grounded will help you navigate this period with confidence.

The bigger picture is still encouraging, showing that growth remains possible as the index builds energy for its next move.

Dow Jones

The Dow Jones Industrial Average is holding steady, showing the kind of resilience that blue-chip stocks are known for.

Right now, it’s navigating a period of consolidation near some important highs. For 2025, the index has delivered a solid 12.72% gain so far, a respectable return by any measure. December’s off to a good start, up 0.5% so far this month.

The all-time high of $48,431, set back in November, is more than just a price point, it’s a key psychological level. Think of it as a checkpoint. Breaking above this high would confirm the Dow’s longer-term uptrend.

December’s price action is testing this level, but so far, there hasn’t been a decisive breakout. That’s okay. Consolidation near all-time highs like this is actually a good thing.

It’s the market’s way of catching its breath, building strength, and preparing for its next move and breakout.

The November high came with what’s known as an indecision pattern. Basically, the market was at a crossroads. December’s positive gains tell us that buyers are still engaged, but the hesitation to push through the highs shows that they’re proceeding with caution. This is typical and healthy behavior for markets at this stage.

If the Dow can break above that November high with momentum, the next big milestone is $50,000. Round numbers like that have a special pull, they grab attention and often act as targets.

But for now, the focus is on clearing the November high. Whether that happens this month or takes a little more time, this period of consolidation is setting the stage for what’s to come.

Nasdaq 100

The Nasdaq 100 is having a great year, leading the charge and leaving other major indexes like the S&P 500 and Dow Jones behind.

So far, it’s up an impressive 22.27% for the year. Even in December, it has continued to edge up by 1.01%. This tells me that investors are still really confident in technology and growth stocks.

Right now, all eyes are on a specific number, which is the all-time high of $26,182 that was set back in October. If the index can push past this point and stay there, it’s a strong signal that the upward trend we’ve been seeing is likely to continue.

What I find encouraging is how the Nasdaq consistently steps up and leads the pack when the market is feeling positive. The December gain might seem small, but it shows that money is still flowing into the tech-heavy index while others are moving a bit slower.

So, what should we watch for? The main thing is whether the index has enough momentum to break through that October high.

If it does, that could clear the path for the long-term uptrend we’ve seen for most of 2025 to keep going.

Until then, we’ll be watching to see if the Nasdaq can hold its lead and break through that resistance, or if it needs a little more time to gather strength for the next leg up.

FTSE 100: 

After a strong run for most of the year, the FTSE 100 seems to be taking a breather. If you’ve been following the UK market, you’ll know it’s had an impressive year, gaining 18.28% so far in 2025. But now, it feels like a moment to be patient.

December has seen a slight dip of 0.55 percent, and last week saw similar pressure. This isn’t necessarily a cause for alarm as I see it as traders taking a step back to evaluate their positions before the year ends.

The number I’m keeping a close eye on is 9,930, the high we saw back on November 12th. It got so close to that big, round 10,000 number. Hitting 10,000 is a psychological milestone. If we can break through that, it could bring a new wave of confidence to the market. For now, it’s acting as a ceiling.

On the flip side, we have a solid floor. The support around the 9,423 level, which was tested on November 21st, has held strong.

Right now, the market seems to be in a consolidation phase, trading between this floor (support) and ceiling (resistance). It’s processing the year’s gains and getting ready for its next move.

Will it push for new highs, or does it need more time to build up steam? The longer-term trend still looks positive, even with this short-term cooldown. My advice is to watch these key levels and see how the story unfolds.

PERFORMANCE REVIEW

Goldman Sachs Group (GS)

Goldman Sachs has been a real standout in the financial world lately, and if you’re a growth investor, it’s probably already on your radar.

So far this year, the stock is up an incredible 49.24%, leaving the major indices in the dust. This just goes to show the strength we’re seeing in financial stocks.

The positive momentum didn’t stop there. December alone has seen a 3.45% gain, pushing the stock to new all-time highs.

Looking at the past week, Goldman continued its climb with a 3.45% increase, and it finished strong with a 2% jump last Friday. When you see consistent gains like these, it tells you there’s a lot of confidence in the company and its ability to navigate the current market.

Earlier in 2025, I watched Goldman break through a key resistance level at $672. Breaking that ceiling back in June was a big deal and set the stage for the strong trend we’ve seen all year. Now, the stock is in what we call “uncharted territory,” hitting new records with every move up.

What I find really encouraging is the recent price action. The stock spent about 50 trading days consolidating in September, building a solid base before its next move. Just last week, it broke out, pushing cleanly through the $825 resistance that had held it back before. 

In my experience, when a consolidation phase like this lasts less than 55 days before breaking out, it’s usually a good sign that the bull trend is continuing, not reversing.

So, what’s next? The big, round number of $1000 is the next major psychological milestone. As long as Goldman keeps making higher highs and higher lows, I believe the path to $1000 looks more and more possible as we head into the end of 2025.

OUTPERFORMING ASSET FOR THE WATCHLIST

Walmart (WMT)

Walmart’s performance this year is a great example of how retail stocks can deliver strong returns when everything lines up just right. The stock is up an impressive 27.4% year-to-date, showing consistent strength throughout 2025.

December’s numbers look particularly encouraging, with a 4.16% gain so far, a sign that buyers are still confident. Even Friday’s modest close, up 0.24%, shows momentum, though it might be time for a brief pause as the market digests these recent gains.

Here’s why Walmart’s story is worth paying attention to. It’s a masterclass in patience and timing. Earlier this year, the stock broke through its 2024 high of $96, a level that had proven tough to crack. Once it finally pushed past that resistance, the real growth began.

Since breaking out of a major consolidation back in January 2024, Walmart has surged an incredible 114%. This is where the lesson lies, recognizing potential setups and sticking with them can pay off big for investors willing to wait.

A key moment came in late November when Walmart broke above the $109 resistance level. That move brought fresh energy into the stock, driving it higher over the following weeks.

If you look at the bigger picture, you’ll notice a healthy pattern here, consisting of periods of consolidation followed by strong breakouts. This kind of steady progress tends to be more sustainable than rapid, straight-line moves, which often fizzle out quickly.

Support is another important piece of this puzzle. Walmart has established a solid support zone around $105, first tested back on February 14th. The stock spent 193 trading days building a base in this area, but one that laid the groundwork for the rally we’re seeing now.

Right now, Walmart is trading above that support zone and its previous resistance levels. As long as buyers stay engaged and that $105 support holds, the stock looks well-positioned to keep moving higher.

With its strong year-to-date performance, recent breakouts, and a solid technical foundation, Walmart has set itself up for a strong finish to 2025.

For investors, it’s a reminder to stay focused on the big picture, trust the process, and recognize the value of patience when it comes to quality setups like this one.

Looking Ahead

The number of U.S. stocks trading above their 200-day moving average has risen to 59% from 57% last week. This suggests the market is recovering from its recent correction and building momentum for further growth.

Keep it simple. Keep it Sublime.

The ST Team

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