The Nasdaq has only pulled back about 1.5%, yet 319 stocks have hit 52-week lows. On October 8, the New York Stock Exchange saw 110 stocks hit new highs, but 416 stocks hit new lows. On the Nasdaq, only 33 stocks reached new highs, while 319 stocks hit new lows. On the same day, the Nasdaq was just about 1.5% off its recently set all-time closing high. If you only look at the index, this seems like a pretty normal correction, but for those holding stocks that have dropped to their lowest point in the past year, the feeling is clearly very different. The Nasdaq is weighted by market capitalization, meaning the ups and downs of large companies have a bigger impact on the index. As long as the heavyweight stocks remain relatively strong, the index can stay at high levels—even if another portion of stocks has been consistently weakening. This data highlights the risk that, while the index remains high, there’s already a batch of stocks within the market lacking support. If this divergence continues and the heavyweight stocks start to decline as well, the pressure currently masked by the index’s performance could further manifest in the index itself. Check out @Gate for trading across more markets.