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 S&P 500, Dow Jones 30, and Nasdaq 100 all ended May with strength, while the FTSE 100 is still working through a sideways phase. But the real attention this week comes from Hewlett Packard Enterprise and Dell Technologies, where the moves have been hard to ignore. 

Let’s get into this week’s newsletter!

US & UK INDICES OVERVIEW

S&P 500

The S&P 500 continues to show strength, and the long-term trend remains bullish. May closed with a solid gain of 5.15%, which brings the year-to-date growth to 10.73%. That tells us the index is still moving in the right direction, and buyers remain active.

The key level in the recent move was the consolidation high from January 28, 2026, at $7,002. Price broke above that level on April 15, and since then, the index has continued to move higher. This kind of breakout is important because it shows price moving out of a previous range and building momentum.

This past week also added to the bullish bias, with the S&P 500 closing up by 1.43%. However, Friday closed as an indecision session, so we may start to see a short-term correction take place.

That would not be a problem on its own. A pullback can be healthy after a strong move. What matters now is whether price can find support, hold firm, and then return to the upside. If that happens, it would support the idea that the current bullish trend still has room to continue through June and into the rest of the year.

Dow Jones

The Dow Jones 30 also remains bullish, and May was an important month for this index. May closed up by 2.79%, and the index also created a new record high during the month at $51,099.

Year-to-date growth now stands at 6.19%, which shows steady progress. The most important development is that price is now above the major $50,000 round number. This level had been an important psychological area, and now that price has broken above it, it may act as support if a correction takes place.

This is a good example of why patience matters. When price is sitting just below a major round number, it can struggle for a while. But once it breaks through with strength, the picture can change quickly.

Going forward, the focus is simple. As long as price holds above the $50,000 area and continues to build from there, the Dow Jones 30 has the potential to continue higher. The new record high at $51,099 is now the key level to watch as the index tries to extend its bullish move.

Nasdaq 100

The Nasdaq 100 continues to be one of the strongest areas of the market. Year-to-date, the index is up 20.13%, and May closed up by 10.49%.

That is a strong monthly move, and it shows that momentum remains firmly behind this index. The other major point is that price has now moved above the $30,000 round number. This was an important psychological level, and breaking above it adds further strength to the bullish case.

The Nasdaq has been leading well, and this type of move can attract more attention from investors who are looking for growth. But again, the lesson is not to rush in without a plan. Strong markets can still pull back, and those pullbacks often create better opportunities than chasing after a big move.

For now, the Nasdaq 100 remains in a strong position. If price can stay above the $30,000 level and continue forming higher levels, the bullish trend remains intact.

FTSE 100: 

The FTSE 100 is still bullish in the long term, but the short-term picture is more patient. Price has been moving sideways since February, and May confirmed that the index is still in a consolidation phase.

Year-to-date growth for the FTSE 100 is 4.81%, and May closed up by 0.29%. That is still positive, but it is not showing the same strength as the US indices. This past week closed down by 0.54%, which reflects the lack of clear momentum right now.

The important thing is that price remains above the 2025 high at 9,954 and also above the 10,000 round number. These are two strong support levels below price. If the FTSE does pull back, this area may become important. We would want to see whether price can hold there, form a base, and then return to the upside.

The next major level to watch is the high from February 27, 2026, which is also the all-time high. To confirm a stronger continuation, price needs to break above that level, push higher, pull back, and then break above a recent high again.

Until that happens, the FTSE 100 remains a bullish market in a sideways phase. This is where discipline matters. You do not need to force an investment when price is still deciding its next move.

PERFORMANCE REVIEW

Hewlett Packard Enterprise (HPE)

Hewlett Packard Enterprise is one of the standout stocks from this week’s analysis. The overall trend is bullish, and the stock has made a strong move after spending a very long time moving sideways.

Price had been moving sideways from October 2015. The initial breakout happened in June 2024, but price then moved sideways again before finally gaining stronger momentum in April 2026.

That momentum took price above the 2025 high at $26. Then in May, the stock continued higher and broke above the $40 round number. This is important because round numbers often act as psychological levels. When price clears them with strength, it can open the door for the next move.

Year-to-date growth for Hewlett Packard Enterprise is 79.18%, and May alone saw the stock rise by 49.6%. This past week also closed strongly, up by 14.53%.

The next level of potential resistance is the $50 level. That is the next price target to watch if the stock continues to climb.

Friday was also important because the stock gapped up and stayed up. Now we need to watch what happens next. Price may pull back to fill the gap, or it may continue higher without a deep correction. Either way, this is a strong stock right now, and the key is to wait for a clean opportunity rather than chasing after the move.

OUTPERFORMING ASSET FOR THE WATCHLIST

Dell Technologies (DELL)

Dell Technologies delivered one of the strongest moves recently. The overall trend is up, and May closed with a major gain of 101.44%. That brings year-to-date growth to 234.37%.

This is a very large move, and it came after a long consolidation period. The consolidation began back in May 2024, with the successful breakout taking place in April 2026. That matters because the longer price moves sideways, the more powerful the move can become once it finally breaks out.

This past week was also extremely strong, with Dell closing up by 42.59%. Friday added even more momentum, with the stock closing up by 32.76% after earnings caused price to gap up.

Now the question is whether price pulls back to fill the gap or only forms a smaller pullback before continuing higher. Both are possible. The main point is that the overall trend remains bullish, and the current move has been gaining momentum.

The next level of resistance is the $500 round number. That is the next major target to watch if Dell continues to rise.

For investors, this is where patience and discipline become important. A stock can be strong and still need time to settle after a major move. The better approach is to watch how price reacts after the gap, wait for structure to form, and then look for a cleaner continuation opportunity.

Looking Ahead

This week, the percentage of U.S. stocks trading above their 200-day moving average increased from 53% to 55%. This positive trend is something to watch as we head into June.

Keep it simple. Keep it Sublime.

The ST Team

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