Weekly Drawdown Report: April 13, 2026
PayPal and Nike Lead a Growing List of Stocks in the Red Zone
The market landscape as of April 13, 2026, shows a significant shift toward deeper drawdowns across a broad range of assets. Our data indicates that the average Drawdown Severity Scoreā¢ has climbed to 5.4, pushing the overall market into territory typically associated with heightened volatility. This marks a period where nearly half of all tracked assets are currently struggling to recover from multi-year or even decade-long declines.
The current environment is characterized by a high concentration of assets in the "Red Zone," our designation for stocks and cryptocurrencies with a Drawdown Severity Scoreā¢ of 5.0 or higher. As of April 13, 2026, we track 766 total assets, and the distribution suggests a market that is increasingly fragmented between a few stable performers and a large group of underperformers.
Market Distribution and the 42% Red Zone Threshold
The internal health of the market is best understood by looking at the concentration of severity scores. Out of the 766 assets we track, 326 are currently in the Red Zone. This represents 42.6% of the total universe, a substantial portion of the market that is experiencing significant price erosion relative to historical peaks.
Conversely, the "Green Zone," which represents assets with a Drawdown Severity Scoreā¢ between 0 and 2, contains 242 assets. This 31.6% of the market shows relative resilience, but it is currently outnumbered by those in the most severe drawdown categories. The remaining 198 assets, or 25.8%, sit in the "Yellow Zone" with a severity score between 2 and 5.
Our data shows that the average Drawdown Severity Scoreā¢ of 5.4 is being driven upward by persistent weakness in the fintech and consumer discretionary sectors. When more than 40% of the market enters the Red Zone, it suggests that the average investor's portfolio is likely carrying several positions that are down significantly from their 52-week or all-time highs.
Major Zone Persistence: Nike and Adobe Remain Stalled
This week saw several high-profile names fail to exit the Red Zone, according to our data date of April 13, 2026. Nike (NKE) remains one of the most prominent examples of a blue-chip stock struggling to find its footing. It currently carries a Drawdown Severity Scoreā¢ of 15.1 and remains firmly in the red. This follows recent reports from Bloomberg regarding shifting consumer preferences and inventory challenges in the footwear industry.
Similarly, Adobe (ADBE) has maintained its Red Zone status with a severity score of 12.0. The software giant has been unable to bridge the gap between its current price and its previous highs, even as other technology peers have seen brief rallies. The persistence of these high scores indicates that these are not minor pullbacks, but rather structural drawdowns that have lasted for several quarters.
The cryptocurrency market also showed extreme consistency in the Red Zone this week. Our data shows that SUI (SUI-USD), Chainlink (LINK-USD), Algorand (ALGO-USD), Aave (AAVE-USD), and Dogecoin (DOGE-USD) all remained in the Red Zone. Specifically, Sky (SKY-USD) maintained a severity score of 15.2, reflecting a deep and sustained decline that has not yet shown signs of a technical recovery.
The Highest Severity Scores: Multi-Year Declines
When we look at the most extreme drawdowns in our database, we find companies that have been falling for years, and in some cases, decades. Nano Dimension (NNDM) currently holds the highest Drawdown Severity Scoreā¢ at 19.5. Our data shows the stock is down -98.1% from its peak, a decline that has lasted 3636 days.
American International Group (AIG) follows closely with a severity score of 18.9. The stock is down -93.8% over a staggering 9248 days. This represents a generational drawdown that has yet to see a full recovery to its historic highs.
In the more recent fintech space, PayPal (PYPL) continues to be a primary focus for drawdown analysis. With a Drawdown Severity Scoreā¢ of 18.8, PayPal is currently down -85.3% over the last 1672 days. This sell-off has wiped out years of gains, and the stock remains one of the most distressed large-cap names in our tracking universe.
EPAM Systems (EPAM) and Alexandria Real Estate Equities (ARE) round out the top five highest severity list. EPAM carries a severity score of 17.7 and is down -82.9% over 1573 days. ARE has a severity score of 17.6 and is down -77.4% over 1521 days. These figures highlight the significant pain felt in both the software services and commercial real estate sectors.
Drawdown Severity Scoreā¢
Down 98% over 3636 days. This level of decline is exceptionally rare in this asset's history.
19.53
Price
$1.71
All-Time High
$88.90
Drawdown
-98.1%
Duration
3636 days
Stocks Approaching the Red Zone: The 5.0 Threshold
While the stocks mentioned above are already deep in the Red Zone, several other prominent names are currently hovering just below or exactly at the 5.0 severity score threshold. These are the stocks to watch closely, as a further decline could shift them into the most severe category of drawdown.
Intuitive Surgical (ISRG) and The Cigna Group (CI) both carry a Drawdown Severity Scoreā¢ of 5.0. ISRG is down -26.2% over 395 days, while CI is down -24.6% over 523 days. For these companies, the current decline is reaching a critical point where it transitions from a standard market correction into a high-severity drawdown.
Ulta Beauty (ULTA) and Cadence Design Systems (CDNS) also sit at the 5.0 severity score mark. ULTA has seen a rapid decline of -26.4% in just 37 days, indicating a very sharp sell-off. In contrast, CDNS has been down -28.8% over 152 days. The speed of the ULTA decline is particularly notable, as it has reached a high severity score in a much shorter timeframe than its peers.
Other stocks nearing this threshold include Applied Digital (APLD) with a severity score of 4.9 and a drawdown of -36.5% over 51 days. Otis Worldwide (OTIS) also sits at 4.9, down -22.9% over 496 days. Essex Property Trust (ESS) and Waters Corporation (WAT) round out this list, both carrying a severity score of 4.9 with drawdowns lasting over 1400 days and 1600 days respectively.
Mega-Cap Check: Resilience vs. Contagion
The broader market's ability to avoid a total collapse often depends on the performance of the largest index components. While names like PayPal and Nike are in deep distress, other mega-cap stocks have managed to stay within the Green or Yellow zones. However, as the average severity score rises to 5.4, the pressure on these leaders increases.
Our data shows that when the percentage of stocks in the Red Zone exceeds 40%, it often creates a "drag" effect on the major indices. Even if the largest companies are not yet in the Red Zone, the breadth of the market indicates that the average stock is struggling. This divergence between the index price and the average Drawdown Severity Scoreā¢ is a key metric we monitor to identify potential market-wide shifts.
As of April 13, 2026, the tech sector remains the primary driver of both high-severity drawdowns and relative stability. While Adobe is in the Red Zone, other software peers have yet to hit that 5.0 threshold. The question for the coming weeks is whether these names will follow the path of Cadence Design Systems into the Red Zone or if they can maintain their current levels.
What to Watch Next Week: Potential Zone Changes
Heading into the third week of April, we are closely monitoring the group of stocks with a Drawdown Severity Scoreā¢ of 4.9. Applied Digital (APLD) and Otis Worldwide (OTIS) are the most likely candidates to cross into the Red Zone if their current price levels do not improve. A move from 4.9 to 5.0 is a significant technical shift in our modeling, marking a transition into high-severity territory.
We will also be watching Ulta Beauty (ULTA) to see if its rapid 37-day decline begins to stabilize. Because its severity score of 5.0 was reached so quickly, any further downward movement could see its Drawdown Severity Scoreā¢ accelerate faster than stocks with longer, slower declines like Waters Corporation (WAT).
Finally, we are tracking the 242 assets currently in the Green Zone. If this count begins to shrink while the Red Zone count of 326 grows, it would indicate a further deterioration of market breadth. We will provide updated severity scores and zone classifications in our next report.
Frequently Asked Questions
How far has market fallen from its all-time high?
The market is currently experiencing significant price erosion with 42.6 percent of all tracked assets falling into the most severe drawdown category. This represents 326 different stocks and cryptocurrencies that are struggling to recover from multi year or even decade long declines. The average severity across the 766 tracked assets has reached a level of 5.4 as of April 13, 2026.
What is market's drawdown severity score?
The market currently holds an average Drawdown Severity Score of 5.4, which places the overall landscape firmly within the Red Zone. This score indicates a period of heightened volatility where underperformers outnumber resilient assets. Historically, a score above 5.0 suggests that a substantial portion of the market is facing persistent weakness rather than a minor pullback.
How long has market been in a drawdown?
The data from April 13, 2026, indicates that many assets are currently mired in declines that have lasted for multiple years or even a full decade. While specific day counts vary by asset, the high severity score of 5.4 reflects a prolonged period of weakness in sectors like fintech and consumer discretionary. This duration is significant enough that nearly half of the market is now classified in the highest drawdown tier.
Disclaimer: DrawdownAlerts provides historical data analysis, not financial advice. Past performance does not guarantee future results. Severity scores are analytical tools, not buy/sell signals. Always do your own research before making investment decisions.