Joel Elconin, co-host of the PreMarket Prep show and founder of the Stock Trader Network, shares insights on the future of US equity markets. He discusses the shift away from mega-cap stocks toward small caps and biotech, and the impact of upcoming macroeconomic data on market trends. Joel anticipates a dovish Fed policy in mid-2026, which could benefit small caps and financials. He highlights technical levels for the S&P 500 and Nasdaq, and explores the volatility in defense stocks due to changing government policies.
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insights INSIGHT
Market Breadth Returned In 2025
2025 showed broader market participation beyond the MAG-7, with small caps and biotech showing life after April lows.
Joel views this breadth as a positive sign for a healthier market structure heading into 2026.
volunteer_activism ADVICE
Trade Around Key Macro Catalysts
Watch upcoming macro catalysts: jobs data, inflation prints, the Supreme Court tariff decision, and Q4 earnings season.
Use these data points to reassess earnings expectations and guidance when positioning for 2026.
insights INSIGHT
S&P Cash Has No Clear Resistance
The S&P made fresh all-time highs and, according to Joel, lacks clear resistance levels in cash terms.
Options activity shows a caller wall near 7,000 that could matter once the cash index breaks higher.
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Joel Elconin, co-host of the PreMarket Prep show and founder of the Stock Trader Network joins me to outline the key investing themes in US equity markets for 2026. We discuss the upcoming macroeconomic data that matters, and circle around to a number of market sectors, getting his outlook on whether we’ll see a continuation or a reversal in the prevailing trends.
Key discussion points include:
2025 Market Recap & Broadening Participation – A look at index performance, the shift away from mega-cap dominance, and a broadening out in other sectors from biotech to small caps in the Russell 2000.
Macroeconomic Data On Tap – Joel points to jobs data coming out this Friday, inflation data next week, the upcoming supreme court decision regarding tariffs, and in just a few weeks the kick off of Q4 earnings season.
Dovish Fed Policy Is Anticipated In Mid-2026 - Joel notes that so far the TLT longer-duration treasuries are not reacting, but typically monetary policy only really affects the short-duration rates. Lower rates should help small caps and be a boon to the financial sector.
A Technical Outlook on the S&P 500 and Nasdaq Indexes – Joel shares the technical levels he is watching on a shorter-term basis for support and resistance; but notes that with markets still up in uncharted waters, that there are no easily identifiable resistance levels.
Government Defense Budget and New Guidelines Created Volatility In The Defense Stocks – Joel highlights how all the new restrictions from the government with regards to management and company incentives sent defense stock reeling lower, but the announcement of $1.5 Trillion in a military spending package sent them right back higher again.
Rotation Trade Into Low P/E and Value Stocks Is The Big Theme at present – There is capital that has rotated out of the Mag 7 leadership and into a broader range of value stocks like Berkshire Hathaway, auto manufacturers like Ford and GM, home builders, healthcare stocks, and consumer staples. Geopolitics are also playing a factor of investors seeking safer brands and investing names.
This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
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