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

The S&P 500 remains in a holding pattern, and understanding why requires looking at what’s happened over the past few months. The index has been consolidating since October 29th, 2025. That’s now 58 trading days of sideways movement.

Year-to-date growth stands at 1.02%. The overall long-term trend remains bullish, but the short-term picture shows hesitation. Earlier this month, price pushed to a new all-time high of $6,986 on January 12th, but it has since corrected and fallen back below the 2025 high of $6,945. That 2025 high is now acting as strong resistance.

The index finished down 0.35% this week with a reversal candle, holding at resistance and struggling to break through. The price action for January is forming a reversal candle on the monthly chart, though not as strong as what we’re seeing from the FTSE 100.

Normally, the US market leads the way, but right now it’s the UK index setting the pace with new record highs.

Looking ahead, there are two scenarios. Price may find the momentum to push through resistance levels as we go through the rest of the month.

Alternatively, we could see a deeper correction before any continuation to the upside. What bulls need is a break and close above the all-time high at $6,986, followed by that classic pattern of higher highs and higher lows to confirm trend continuation.

Dow Jones

While the S&P 500 is still bumping its head against resistance, the Dow Jones is telling a much more optimistic story. It’s currently trading above its 2025 high of $48,886, boasting a steady 2.15% growth for the year so far.

In my experience, watching a benchmark hold its ground like this is a great sign for the long-term bullish trend.

The next big milestone is the $50,000 mark. Now, keep in mind that big, round numbers often act as psychological hurdles for investors. I’ve seen plenty of rallies pause at these levels before.

However, if we can clear $50,000, it’s a clear signal that the upward momentum has some serious legs.

For now, focus on the fact that the Dow is staying strong above its support levels. As we move through the month, keep a close eye on whether it can gain more distance from that 2025 high.

Nasdaq 100

Like the S&P 500, the Nasdaq 100 is in a bit of a holding pattern. While it’s up 1.41% for the year, it hasn’t managed to push past its 2025 high of $26,182. This is a bullish sign overall, the index is just consolidating and gathering steam for its next move.

Now, one thing the S&P 500 has done that the Nasdaq hasn’t is briefly touch and surpass its own 2025 high. Even though it didn’t stay there, it showed that it had the strength to break out.

The Nasdaq hasn’t shown us that yet. For me to feel confident that the Nasdaq is ready to climb higher, I’d want to see a strong, clear move above that $26,182 level.

Until that happens, my approach to the tech-heavy index is to wait and see. It’s about being patient and waiting for the right signal before making a move.

FTSE 100: 

In a surprising turn of events, the UK market is actually outperforming the US for a change. So far this year, the FTSE 100 is up 2.14%, and January is shaping up to be a solid start to 2026.

I’m seeing a long-term bullish trend here. The market has pushed past the 2025 high of 9,954 and even crossed the big psychological milestone of 10,000, even hitting a new all-time high of 10,257 on January 16th.

Since hitting that peak, things have cooled off a bit. The market pulled back, and we’ve seen some indecision, with the price hovering just above that 10,000 mark. It feels like the market is taking a breather.

So, what should we be looking for now? I’m waiting to see if it can push higher and close above that all-time high of 10,257. If that happens, it’s a great sign the bull run will continue.

A strong close to the month could set a positive tone for the rest of 2026, giving us a good foundation for growth as the year goes on.

PERFORMANCE REVIEW

EnerSys (ENS)

EnerSys has been a standout performer, showing an impressive 18.17% growth so far this year. This isn’t just a recent surge, it’s a trend that started back in October 2025.

I recall watching it break through a key resistance level at $113, and since then, it has climbed an incredible 52%.

Right now, the stock is trading comfortably above its 2025 high of $152. If you look at the weekly chart, you can see a nice, clean upward trend that’s been developing since September 2025.

It continued this pattern last week with a 3.13% gain. The last time it bounced off a support level was on January 2nd, 2026, and it has only gotten stronger since, which tells me there’s solid momentum behind it.

However, Friday’s 1.53% dip could signal a small correction before it continues its upward move. In my experience, these pullbacks are normal. If it does dip further, I’d keep an eye on the $160 level as the first line of support.

Looking ahead, the next big milestone would be the $200 mark, though it still has some ground to cover to get there.

OUTPERFORMING ASSET FOR THE WATCHLIST

Monster Beverage (MNST)

Monster Beverage has been on a great run lately, closing out the week with some impressive momentum. I’ve been watching its year-to-date growth, which is sitting at a solid 6.95%, and the long-term trend looks very positive. The stock has even pushed past its 2025 high of $78, which is a great sign for investors.

Last week was particularly strong, with the stock closing up almost 5%. When you see a move like that in a single week, you hope that momentum carries over.

The daily chart is showing a classic upward trend with higher highs and higher lows, exactly the kind of pattern you want to see.

The big number to watch is $100. There’s still some room for the stock to climb before it gets there, but keep an eye on it. That level could act as a resistance point, either slowing things down or causing a pullback.

On the other hand, if this strong momentum continues, we might see it push right through. It’s all about watching how the price behaves as it approaches that key level.

Looking Ahead

The percentage of U.S. stocks trading above their 200-day moving average remains unchanged from last week at 64%. This figure has been steadily rising since November 2025.

Keep it simple. Keep it Sublime.

The ST Team

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