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Nasdaq breadth measure sinks to three-month lows, signaling weaker participation

The Nasdaq New High/New Low index ended Monday at 40.6%, a weakest reading since April 10, and bulls are watching for it to rebound above its 10-day moving average.

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Reuters data commentary on July 21 said the Nasdaq Composite has looked shaky since its record close on June 2, and market internals suggest the weakness is broader than the headline index indicates. The Nasdaq New High/New Low index, a gauge of how many stocks are making fresh highs versus lows, ended Monday at 40.6%, its weakest reading since April 10. The indicator has been deteriorating for months rather than shifting abruptly, after rallying into late April following a March 30 bottom. Reuters highlighted a divergence during the Nasdaq push to new record highs, when the Composite climbed but the breadth measure recorded a lower high, a pattern that can signal fewer stocks are participating in the rally. With the NH/NL index now mired near three-month lows, Reuters said the narrowing has been widening into a decline, leaving the Nasdaq on a thinner foundation of support. The commentary also noted that during late 2025 pullbacks the indicator bottomed between 29.7% and 35.0%, while March 2026’s low was deeper at 17.6%. Bulls are watching for the NH/NL index to rise back above its declining 10-day moving average, which stood at 53.4% on Monday, as a sign selling pressure is easing.

Latest closeNasdaq Comp. 25,881.95 ▼1.5%

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