Nasdaq’s Hidden Warning: Two Key Breadth Indicators Flash Red

While prices cling to gains, the Nasdaq Bullish Percent Index and McClellan Summation Index reveal weakening internals.

Beneath the Nasdaq’s seemingly resilient surface, a stealthy shift is unfolding. The Nasdaq Bullish Percent Index—a measure of stocks on point-and-figure buy signals—has rolled over from overbought territory, while the McClellan Summation Index, a breadth momentum gauge, has turned negative for the first time in weeks.

These divergences suggest institutional selling is quietly accelerating, even as major indices hover near highs.

Here are the details and the suggested trade.