Latest data shows that the proportion of Nasdaq 100 stocks that have fallen at least 20% from their all-time highs has risen to 48%, a new high since the market sell-off in February and March of this year. While lower than the approximately 60% level before the market bottomed out at the end of March, this proportion has more than doubled in the past 12 months. During the 2022 bear market, this proportion once reached as high as 80%.
Meanwhile, 64% of Nasdaq 100 stocks are still trading above their 200-day moving average, near its highest level this year. In contrast, before the market bottomed out on March 30, only 38% of the stocks were above their 200-day moving average.
This means that the current US stock market rally is increasingly reliant on a few large-cap tech stocks, and the breadth of the market is narrowing. (The Kobeissi Letter, independent market research firm)
