Nasdaq Breadth Craters to 3-Month Low as Chip Rout Deepens
SOX has more than doubled off its 52-week low of $5,418.316.
Summary
The Nasdaq's internal breadth has deteriorated sharply, with the New High/New Low Index falling to 49.4%, its lowest since April 13. This signals that fewer stocks are participating in any upside, leaving the index vulnerable. The PHLX Semiconductor Index is flirting with bear-market territory, dragging the Nasdaq 4.5% below its June 2 record. E-mini Nasdaq 100 futures are down nearly 2% pre-market Friday, pointing to further pressure. The NH/NL Index's failure to confirm recent record highs had already warned of narrowing participation; now the decline is broadening. Bulls need the breadth gauge to reclaim its 10-day moving average at 56.4% to suggest the pullback is losing steam.
At the time of this announcement, SOX was trading at $11,867.50 on NASDAQ in the Technology sector. The 52-week trading range was $5,418.32 to $14,655.29. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.