Market Prep: NASDAQ Triple Top that Has Wall Street Worried

Hello traders,

As we near the end of the year, the market remains flat. 2025 was overall a year marked by persistent choppiness and uneven performance—the Nasdaq remains hovering near its record highs, showing signs of a possible triple top pattern.

This week is another short week, with the market closed on Thursday, January 1, 2026. The repo market is struggling with a lack of liquidity yet again, and the broader market is reacting by selling high-beta speculative stocks. It’s a good time to focus on defensive stocks. Some ETFs we mentioned in the past are performing well and remain in a strong uptrend. We will discuss them below and explore some trade ideas. Let’s also look at SPX levels that shifted a bit lower.