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.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
S&P 500
As we move through the first month of the year, the S&P 500 is giving investors plenty to think about. It’s hit a new record high, up 1.38% so far in January. That might not seem like much, but small gains can build momentum.
The index climbed past the 2025 high of $6,945, but it’s pulled back slightly since then, showing that this level remains a point of resistance.
The all-time high, currently $6,986 (set on January 12th), is the next big marker to watch. If the bulls can push past and close above that level, it could signal the uptrend is back on.
Beyond that, the $7,000 milestone is the next psychological barrier to overcome.
On the flip side, support is holding steady just above the previous consolidation zone. Think of it as a floor, a foundation to build on. The strategy here is simple: stay steady, hold the line, and aim for higher ground.
These movements are a reminder of how the market ebbs and flows. It’s not about predicting every twist but staying clear on the bigger picture.
Dow Jones
The Dow Jones is currently painting a much more comfortable picture for us, up 2.7% so far this year. Looking at January’s performance, that same steady growth is clear.
What I find most encouraging is how confidently it’s trading above the 2025 high of $48,886. In my experience, seeing a lack of hesitation like this is a strong sign that the bulls have taken charge.
We’re now eyeing that $50,000 milestone. It’s a big, round number that often acts as a psychological hurdle. Whether it serves as a springboard to new heights or a temporary ceiling, the momentum feels healthy right now.
Nasdaq 100
The Nasdaq 100 is telling a slightly different story right now. It’s in positive territory, up 1.11% year to date, but there’s a sense of uncertainty in the air.
If you look at the patterns from December 2025 and January 2026, you’ll see candles that signal indecision about where prices might head next.
Unlike the other indices, the Nasdaq still hasn’t broken past its all-time high, the 2025 peak of $26,182. Right now, prices are hovering just below that mark, waiting for a strong catalyst to push them higher.
When all major indices start hitting new record highs together, it usually signals broader market strength. For now, though, the Nasdaq is the one to keep an eye on. It’s the piece of the puzzle that could confirm the next big move.
FTSE 100:
The FTSE 100 has been quietly making waves this year, and it’s worth paying attention. As of now, the UK benchmark is up 3.06% year to date, with January’s performance contributing fully to that gain.
What stands out most here is the clear shift in momentum we’ve seen since May 2025. Before that, the index had been treading water, with inconsistent movement that made it hard to gauge direction. But after May, there’s no doubt the bulls took over.
The FTSE has already left its 2025 high of 9,954 in the dust and confidently pushed past the 10,000 mark. This was a key level many expected to act as firm resistance, but instead, the index powered right through. Now, even if we see a correction, that 10,000 level looks likely to act as a strong support zone moving forward.
Looking at last week’s performance, the FTSE gained 1.09%, though Friday ended with a small pullback of 0.04%, creating what’s often called an “indecision candle.” This could mean the index is taking a moment to catch its breath.
UK markets are showing real strength right now, and that’s the kind of momentum that can start drawing more attention to UK stocks.
PERFORMANCE REVIEW
Applied Materials (AMAT)
Applied Materials has been on an impressive run lately. After spending months in consolidation, from a high of $255 in July 2024 to a low of $123 in April 2025, the stock finally broke out in December 2025.
Things really heated up in January. The stock opened over 4% higher from December’s close and hasn’t looked back. So far this year, it’s up an incredible 27.25%, firmly holding above the $300 mark, a milestone many investors have been watching. Just last week, the stock gained another 8.58%.
That said, Friday’s trading session ended with a reversal pattern, which could signal that the momentum is cooling off. Here’s where it’s important to keep a level head.
A pullback to establish support before climbing higher wouldn’t be unusual. In fact, this kind of retracement is often necessary to build a sustainable, long-term trend.
If you’re watching Applied Materials or holding shares, this could be a chance to see how the stock behaves during a pullback—and possibly spot an opportunity for the next leg higher.
OUTPERFORMING ASSET FOR THE WATCHLIST
Micron Technology (MU)
Micron Technology is another one to watch closely. This stock kicked off an impressive bullish run back in September 2025, and it really hasn’t looked back since.
If you look at the year-to-date figures, Micron is already up 27.1%. The stock didn’t just nudge past its 2025 high of $298, it cleared that level and the $300 mark with real conviction.
On the weekly chart, we saw a solid 5.12% gain this past week, capped off by an emphatic “gap-up” candle on Friday that closed up 7.76%.
In my experience, that kind of momentum is a strong signal. As long as we keep seeing this clear pattern of higher highs and higher lows, there is every reason to stay optimistic that the trend will continue over months and potentially longer that a year.
Looking Ahead
The percentage of U.S. stocks trading above their 200-day moving average increased from 59% last week to 61% this week. This indicates that the market is sustaining its momentum and may be poised for additional gains.
Keep it simple. Keep it Sublime.
The ST Team
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