Mapping the Market: Nasdaq troubles run deeper that they appear

The Nasdaq Composite's New High/New Low Index fell to 40.6%, its weakest reading since April 10, signalling that the rally is narrowing into a potential decline. Despite the headline Nasdaq hitting a record close on June 2, the NH/NL Index posted a lower high, a classic breadth divergence indicating fewer stocks are participating in the upmove. Bulls are watching for the indicator to reclaim its 10-day moving average at 53.4% to confirm easing selling pressure, with prior pullback lows ranging between 29.7% and 35.0%.