Monthly Drawdown Report: June 2026

DrawdownAlerts Monthly Report: June 2026

1. Opening: Key Takeaways

The month of June 2026 has brought a stark realization for market participants tracking systemic risk. Our latest dataset reveals a market that is heavily tilting toward elevated levels of stress. We see clear evidence that a significant portion of tracked equities are struggling to maintain their structural integrity.

At DrawdownAlerts, we monitor these shifts through our proprietary severity scoring system, which measures both the depth and duration of asset declines. The current reading points to a broad-based deterioration across multiple sectors. This report details the key movements, top severity scores, and critical transition zones that defined the past month.

We observe that historical drawdowns are stretching longer, and new assets are rapidly entering warning zones. Investors must navigate a landscape where almost half of our tracked universe resides in the highest risk category. Our goal is to provide the objective data necessary to understand these underlying market mechanics.

2. Monthly Summary: Risk Zone Distribution

Our database currently tracks a total of 800 assets to provide a comprehensive view of market health. In June 2026, we recorded a highly skewed distribution of these assets across our three primary risk zones. The data shows that market stress is concentrated heavily in the upper bands of our tracking system.

Specifically, we find 352 assets in the red zone, which represents 44.0% of our total tracked universe. The yellow zone, our intermediate warning category, contains 190 assets, making up 23.8% of the database. This leaves only 258 assets in the green zone, accounting for 32.3% of the total.

The average severity score across all 800 tracked assets now stands at 5.4. This average reflects a market that is well past the initial stages of a standard correction. The high concentration of assets in the red zone highlights the persistent selling pressure that has characterized the first half of the year.

When we look at these figures, we see a clear picture of a bifurcated market. While nearly a third of the tracked assets remain relatively healthy in the green zone, the vast majority are experiencing moderate to severe drawdowns. This distribution suggests that risk mitigation should remain a primary focus for portfolio managers.

3. Zone Movement: Rapid Churn and Escalating Warning Signs

The transition data for June 2026 reveals an incredibly dynamic and volatile environment. We tracked a massive wave of migration between zones, signaling rapid shifts in investor sentiment. Most notably, a staggering 433 stocks entered the yellow zone this month.

This massive influx into the yellow zone indicates that a substantial portion of the market is beginning to lose its upward momentum. These assets are transitioning out of the green zone as their drawdown profiles worsen. We view this as a primary warning sign of broader market fatigue.

Meanwhile, the red zone experienced high levels of churn as well. We recorded 168 stocks entering the red zone during June. This influx shows that the most severe drawdowns are still expanding to capture new assets.

Conversely, 157 stocks managed to exit the red zone during the same period. Some of these exits represent genuine recoveries where stocks reclaimed key technical levels. Other exits, however, simply reflect stabilization at depressed prices rather than a true return to health.

The net result of these movements is an expansion of the total red zone population. We analyze these shifts to identify whether the market is finding a floor or continuing to deteriorate. The high volume of entries into both the yellow and red zones suggests that sellers still control the primary narrative.

4. Top Severity Scores: Deep Dive into Extreme Situations

Our severity score is a powerful metric because it combines the total percentage decline of an asset with the duration of that decline. This approach prevents us from overreacting to sudden but brief drops, while highlighting prolonged, destructive downtrends. In June 2026, we observed some of the highest severity scores in the history of our platform.

Topping our list is Wheels Up Experience Inc., trading under the symbol UP, which exhibits a truly extreme drawdown profile. This asset carries a severity score of 22.1, driven by a catastrophic decline of -99.6%. This drawdown has now persisted for an incredible 1804 days without finding a meaningful recovery.

Next, we find enCore Energy Corp., represented by the symbol EU, which presents a different kind of long-term struggle. This asset has a severity score of 20.4, with a total drawdown of -85.5%. What makes this case unique is the duration, as the asset has remained in this drawdown state for 5605 days.

Nano Dimension Ltd., trading under the symbol NNDM, occupies the third spot on our high-severity list. We recorded a severity score of 19.6 for NNDM, reflecting a massive decline of -98.4%. This drawdown has dragged on for 3690 days, illustrating the persistent difficulty the company faces in regaining market favor.

EPAM Systems, Inc., symbol EPAM, also shows severe distress with a severity score of 19.0. The stock is down -88.8% from its peak, and this drawdown has lasted for 1627 days. This represents a significant erosion of value for a major technology services provider over a relatively short period.

American International Group, Inc., trading as AIG, continues to carry the legacy of its historical collapse with a severity score of 18.9. The asset remains down -93.9% from its all-time high, a state that has persisted for a staggering 9302 days. This remains one of the longest-running drawdowns in our entire database of 800 assets.

PayPal Holdings, Inc., symbol PYPL, is another notable large-cap name near the top of our list with a severity score of 18.8. The digital payments pioneer is currently down -85.6% over a span of 1726 days. This long-term decline highlights the shifting competitive landscape and the pressure on pandemic-era market leaders.

Charter Communications, Inc., under the symbol CHTR, registers a severity score of 18.2. The cable and broadband giant has experienced a decline of -82.2% over 1694 days. This drawdown reflects the broader structural challenges facing traditional media and telecommunications providers.

PG&E Corporation, trading as PCG, sits at a severity score of 17.9 with a total decline of -75.5%. This drawdown has lasted for 3146 days, driven by ongoing regulatory, environmental, and operational hurdles. The utility sector has faced unique headwinds that keep PCG deeply embedded in our high-severity list.

Finally, we round out our top ten with Paramount Skydance Corporation, symbol PSKY, and Zoetis Inc., symbol ZTS, which both carry severity scores of 17.3. PSKY is down -89.1% over 1851 days, reflecting intense competition in the media space. ZTS is down -69.2% over 1567 days, showing that even high-quality animal health providers are not immune to deep drawdowns.

5. Approaching the Red Zone: Borderline Assets to Watch

Beyond the assets already experiencing severe drawdowns, we must also monitor those on the precipice of deeper trouble. We define the border zone as assets carrying a severity score between 4.0 and 5.0. These stocks are experiencing escalating pressure and could easily cross into the red zone next month.

We currently see four distinct assets sitting exactly at the top of this warning threshold with a severity score of 5.0. These assets are Applied Optoelectronics, Inc., symbol AAOI, Barnes Group Inc., symbol B, UGI Corporation, symbol UGI, and West Pharmaceutical Services, Inc., symbol WST. Each of these stocks has seen its drawdown profile worsen significantly over recent weeks.

Just behind this group is EQT Corporation, trading under the symbol EQT, which carries a severity score of 4.9. The natural gas producer has faced volatile commodity markets that have steadily dragged down its technical standing. We are watching EQT closely as it threatens to join the 5.0 severity tier.

These five assets represent a diverse mix of technology, industrials, utilities, healthcare, and energy. The fact that they are all clustering around the 5.0 threshold indicates that downward momentum is a market-wide phenomenon. We will monitor these specific symbols throughout July to see if they transition fully into the red zone.

6. Sector Patterns: Stressed vs. Healthier Industries

When we analyze our database of 800 assets, clear sector patterns begin to emerge. The technology and digital services sectors continue to exhibit some of the most severe drawdowns in our system. Companies like EPAM, NNDM, and PYPL highlight the persistent weakness in high-growth, software-reliant business models.

We also observe significant stress in the media and telecommunications sectors. Charter Communications, with its -82.2% decline, and Paramount Skydance, down -89.1%, show that content distributors and creators are struggling. These structural shifts have kept these sectors heavily weighted in our red zone.

Conversely, the utility sector shows a highly fragmented profile. While PG&E Corporation remains deeply depressed with a 17.9 severity score, other utilities are only now beginning to show signs of stress. For instance, UGI Corporation is currently approaching the red zone with a severity score of 5.0.

The healthiest sectors, which populate our green zone of 258 assets, tend to be concentrated in defensive areas. These include select consumer staples and specialized industrial niches that have managed to maintain stable price structures. However, the high number of yellow zone entries suggests that even these defensive areas are starting to feel the pressure.

7. Month-Over-Month Trend: Rising Systemic Stress

To understand the direction of the market, we must compare this month's data to previous periods. The most telling statistic from June 2026 is the massive influx of 433 stocks into the yellow zone. This represents a significant shift from the green zone, indicating that market health is deteriorating at a rapid pace.

While the red zone saw a relatively balanced exchange of 168 entries and 157 exits, the overall trend points to rising systemic stress. The average severity score of 5.4 remains elevated, reflecting the deep drawdowns of our top-ten list. We do not see any evidence of a broad market recovery in these numbers.

Instead, the data suggests that the market is building up a large reservoir of moderately stressed assets in the yellow zone. If macroeconomic pressures persist, many of these 433 assets will likely transition into the red zone. This creates a high-risk environment where further downside is highly probable.

We must also consider the extreme duration of some of these drawdowns, such as AIG at 9302 days and EU at 5605 days. These long-term drawdowns drag heavily on the market's average severity score. The addition of newer, fast-falling assets only exacerbates this structural weakness.

8. What to Watch in July: Data-Driven Outlook

As we move into July, our primary focus will be on the behavior of the yellow zone. With 433 assets newly placed in this warning category, we will monitor how many break down further. If a significant percentage of these assets transition to the red zone, we will see a dramatic spike in overall market stress.

We will also pay close attention to the border assets like AAOI, B, UGI, WST, and EQT. These five stocks serve as an early warning system for their respective sectors. Their ability to find support or fall further will tell us a lot about the market's underlying strength.

Finally, we will track whether the 157 stocks that exited the red zone this month can sustain their recoveries. If these assets fall back into deep drawdowns, it will confirm that the recent stabilization was temporary. We will continue to provide objective, data-driven updates as these trends develop.