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.
The first week of March was a reality check for investors. After hitting record highs for months, the major market indices have started to drop. This is a good reminder that markets don’t always go up. However, every market correction also presents new opportunities.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
S&P 500
The S&P 500 seems to be stuck in a bit of a tug-of-war right now. So far this year, the index has dipped by 1.54%, and March hasn’t helped with the month down by 2.02%.
What I find interesting is how the high from last year, around $6,945, is acting like a tough barrier. We saw the price pop above it in both January and February, but it just couldn’t stay there.
Right now, the market is trading within a clear range. On the low end, we have support at $6,521, which has held firm since last November. On the high end, there’s the all-time high of $7,002 near that big, psychological $7,000 round number.
The price is currently around $6,700, and it’s been in this holding pattern for over 55 trading days.
So, what should we be looking for? The next big move will be very telling. If we see a strong, decisive break above that $7,000 all-time high, it could mean the bulls are ready to run again.
On the flip side, if the price drops below the $6,521 support level, it might be time to step back and rethink the bullish outlook.
Dow Jones
The Dow is following a similar path to the broader market. It’s down 1.17% for the year and 3.01% for March, which shows it’s struggling to push higher.
For weeks, the high of $48,886 from 2025 has been holding it back. If we can get past that, the next big psychological level is $50,000. After that, the all-time high of $50,512 is the final hurdle.
Before we can think about new highs, the market needs to find some stability. If support holds and we see buying momentum return, the path forward is clear.
First, we need to break through the 2025 high. Then, push past $50,000. Only then can we start talking about new records.
Nasdaq 100
Of the three major US indices, it’s had the toughest start to the year, currently down 2.4%. We’ve seen it dip 1.27% in March alone. Neither the buyers nor the sellers have managed to take control.
From my perspective, the key level to keep an eye on is the 2025 high of $26,182. For now, the price is just moving sideways, building what I call a “base” in this consolidation area.
If you’re optimistic, the hope is that this base provides a solid foundation for the price to eventually break through its all-time high and continue the long-term uptrend.
FTSE 100:
The FTSE 100 saw a significant drop this week, with March’s figures down 5.74%. This pullback has essentially erased the strong gains we saw at the beginning of the year.
However, it’s worth remembering that the index is still up 3.56% year-to-date, which shows just how strong the market was before this recent dip.
Friday brought another 1.24% decline, continuing the downward trend. It looks like the index is hitting a key support level. What we’re hoping to see now is for buyers to step in, push the price back up, and signal a return to an upward trend.
To feel confident that the long-term uptrend is still on track, we need to see the index climb back above its February 27th high of 10,934.
If the decline continues, the previous resistance level around 9,930 could become the new support.
PERFORMANCE REVIEW
Roivant Sciences (ROIV)
Roivant Sciences has been an interesting stock to watch in 2026. It’s up an impressive 32.63% so far this year, which is a fantastic run.
I remember it breaking its old all-time high of $16 back in October 2025, and it’s been on a steady climb ever since.
Since that breakout, the stock has gained 71%. That’s the kind of momentum we all look for. Recently, though, it’s hit a bit of a speed bump at the $30 mark. This is a classic example of a round number acting as resistance, which we continuously see happen with other stocks.
So far in March, the stock has pulled back just a little, about 0.55%. On Friday, it dipped a bit more, by 3.16%, as it tests support just under that $30 level.
What I find encouraging is that the overall pattern is still positive, with higher highs and higher lows. That $30 level is the key to watch. If the stock can break cleanly above it, that could signal the start of its next move up. For now, it’s a good time to be patient and see how it behaves around this important price level.
OUTPERFORMING ASSET FOR THE WATCHLIST
Johnson & Johnson (JNJ)
Even a solid stock like Johnson & Johnson can’t completely avoid a market dip. As a healthcare stock, it tends to hold up better when the market is shaky. And it has, with a respectable 16.16% gain for the year so far.
However, March wasn’t a great month for the stock. It dropped 3.23%, and I was watching it closely as it tried and failed to break past the $250 resistance level.
There was a glimmer of good news last Friday when the stock closed up slightly. This could be a sign that buyers are getting interested again and that the stock is finding a stable price point. If it bounces back from here, we could see it try to reach its early March high of $251 again.
Looking Ahead
The percentage of U.S. stocks trading above their 200-day moving average has slipped from 58% to 52% this week. While this indicates some market weakness, we remain optimistic that the current trend will continue.
Keep it simple. Keep it Sublime.
The ST Team
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