Nasdaq breadth nears a prior washout low
QQQ•The Nasdaq New High/New Low Index fell to 18.9% on Friday, its weakest reading since March 31, nearing the 17.6% level reached when the Nasdaq bottomed during the spring selloff. Nasdaq futures were up more than 1% Monday morning after the index lost more than 4% last week.
1. Breadth deteriorates
The Nasdaq Composite fell more than 4% last week, its worst weekly decline since late June, as the PHLX Semiconductor Index and S&P 500 technology sector posted their biggest weekly declines since April 2025. By Friday's close, the Nasdaq was down 5.3% from its October 6 record close.
2. A potential washout
The Nasdaq New High/New Low Index dropped to 18.9% on Friday, down from a mid-August peak of 67.8%. Between mid-August and the Nasdaq's October 6 peak, the Roundhill Magnificent Seven ETF gained more than 8% and reached record highs as fewer stocks participated in the advance. Some traders view the indicator's approach to 17.6%, its March 31 low, as a possible sign of a market washout; the divergence remains unresolved.
