Archive · 21 Jul 2026
Nasdaq Weakness Signals Deeper Market Troubles
The Nasdaq Composite, which tracks a large group of tech stocks, has been struggling since it hit a record high on June 2.
A special indicator called the NH/NL Index, which shows how many stocks are hitting new highs versus new lows, is at its weakest point since April.
This means fewer stocks are doing well, even though the overall index is still high.
Historically, when this indicator is low, it has often meant that the market is about to drop.
Bulls, or optimistic investors, are hoping the indicator will improve soon, while bears, or pessimistic investors, think the market might be in for a bigger decline.
The Nasdaq Composite hit a record close on June 2 but has struggled since then.
The NH/NL Index is at 40.6%, its weakest since April, indicating fewer stocks are participating in the rally.
Historically, low NH/NL Index readings have often preceded market declines.
Bulls are watching for the NH/NL Index to climb above its 10-day moving average of 53.4%.
The NH/NL Index's weakness suggests the Nasdaq is resting on a thinner foundation of support.
- Who
- Nasdaq Composite and market analysts
- What
- Weakness in the Nasdaq Composite and the NH/NL Index
- When
- Since June 2, with historical context from 2025 and 2026
- Where
- Nasdaq market
- Why
- The NH/NL Index indicates fewer stocks are participating in the rally, suggesting a thinner foundation of support.
Bullish Perspective
Bearish Perspective
Market Momentum
Bullish Perspective
Bulls are optimistic that the NH/NL Index will climb back above its 10-day moving average, indicating easing selling pressure.
Bearish Perspective
Bears argue that the NH/NL Index's weakness suggests a broader decline, with fewer stocks participating in the rally.
- Nasdaq Composite Record Close
- June 2
- Current NH/NL Index
- 40.6%
- Lowest NH/NL Index in 2026
- 17.6%
- 10-day Moving Average of NH/NL Index
- 53.4%
- Historical NH/NL Index Range During Pullbacks
- 29.7% - 35.0%