Nasdaq 100 breadth narrows as 48% of stocks sit 20% below peaks
According to The Kobeissi Letter, the share of Nasdaq 100 stocks trading at least 20% below their 52-week highs has reached 48%, the highest since the February-March selloff, though breadth metrics remain mixed.
Market concentration is intensifying in the Nasdaq 100. The percentage of index components trading at least 20% below their 52-week highs has risen to 48%, the highest level since the February-March selloff, according to data from The Kobeissi Letter.
That figure has doubled over the past 12 months but still remains below the 60% reading recorded just before the late-March market bottom. By comparison, during the 2022 bear market, this metric surged as high as 80%.
Despite the widespread drawdowns, 64% of Nasdaq 100 stocks are still trading above their 200-day moving average — near the highest reading of the year. For perspective, only 38% of index constituents were above that key moving average before the market bottomed on March 30th.
The takeaway: the rally is becoming increasingly dependent on a shrinking group of stocks, suggesting that the broader index's gains rest on a narrow foundation.
Source: The Kobeissi Letter