Weekly Drawdown Report: July 4, 2026
Why 353 Stocks Are Stuck in the Red Zone as of July 4, 2026
UP (UP) is down 100% from its all-time high as of July 4, 2026, and has been falling for approximately 1,800 days. The Drawdown Severity Score™ stands at 22.1, placing it deep within the red zone. Across our database of 801 tracked assets, the average severity score has reached 5.4, with 44% of all assets currently sitting in the red zone.
Market-Wide Drawdown Distribution
Our data shows a heavy concentration of assets experiencing severe, long-term pullbacks as of July 4, 2026. Out of the 801 tracked assets in our database, 353 assets reside in the red zone, which represents 44.1% of the entire coverage universe. The red zone consists of assets carrying a Drawdown Severity Score™ of 5.0 or higher, indicating deep price declines combined with prolonged recovery timelines.
The yellow zone contains 190 assets, representing 23.7% of the tracked market. These assets carry a severity score between 2.0 and 5.0, marking moderate pullbacks that require close observation. Meanwhile, the green zone holds 258 assets, or 32.2% of the database, with a Drawdown Severity Score™ below 2.0.
The overall average severity score across all 801 assets is 5.4. This average sits firmly in red zone territory, highlighting the systemic pressure facing a broad swath of equities.
Key Zone Changes and Market Shifts
Several notable equities crossed critical threshold boundaries during the week ending July 4, 2026. Apple (AAPL) crossed from the green zone into the yellow zone as its Drawdown Severity Score™ reached 2.0. This shift indicates a measurable expansion in the stock's pullback duration and depth.
Conversely, Vanguard Information Technology ETF (VGT) moved from the yellow zone back to the green zone, finishing the week with a severity score of 1.8. This indicates a minor stabilization in the broader technology sector, even as individual mega-cap components like Apple experienced worsening trends. Other positive movements included Keysight Technologies (KEYS), which improved to green with a severity score of 1.9, and Seagate Technology (STX), which reached a severity score of 2.0 to enter the green zone.
Industrial and semiconductor names showed mixed results. Textron Inc. (TXT) slipped from green to yellow with a severity score of 2.1. Entegris (ENTG) improved to the green zone with a severity score of 1.2. However, CoreSite Realty (COR) deteriorated from yellow to red with a severity score of 5.1, and ON Semiconductor (ON) also crossed into the red zone with a severity score of 5.2.
Two notable assets managed to escape the red zone this week. DoorDash (DASH) improved to a severity score of 4.9, placing it back in the yellow zone. Applied Optoelectronics (AAOI) also moved from red to yellow, landing exactly on the border with a severity score of 5.0.
The Highest Drawdown Severity Scores
The most extreme drawdowns in our database represent multi-year, near-total capital erasures. UP (UP) leads all tracked assets with a Drawdown Severity Score™ of 22.1, suffering a -99.6% decline from its peak over a span of 1,804 days. This asset has spent years in a persistent downward trajectory without any meaningful sustained recovery.
Euroseas (EU) holds the second-highest severity score at 20.4, with a drawdown of -85.5% spanning 5,605 days. This massive timeline highlights how historical peaks can leave assets underwater for well over a decade. Similarly, Nano Dimension (NNDM) carries a severity score of 19.6, down -98.4% over 3,690 days.
EPAM Systems (EPAM) ranks fourth with a Drawdown Severity Score™ of 19.0, down -88.8% over 1,627 days. Rounding out the top five is American International Group (AIG), which carries a severity score of 18.9. The insurance giant remains -93.9% below its historical peak, with a drawdown duration extending 9,302 days.
Drawdown Severity Score™
Down 99.6% over 1804 days. This level of decline is exceptionally rare in this asset's history.
22.11
Price
$8.19
All-Time High
$2,310.00
Drawdown
-99.6%
Duration
1804 days
Stocks Approaching the Red Zone Boundary
A significant group of equities is currently hovering just outside or right on the edge of the red zone. Applied Optoelectronics (AAOI) sits at a severity score of 5.0, down -32.7% over 42 days. Barnes Group (B) also holds a severity score of 5.0, experiencing a -30.3% drawdown over 104 days.
Other long-term decliners are also resting on the 5.0 boundary. UGI Corporation (UGI) carries a severity score of 5.0, down -21.1% over a massive 2,685 days. West Pharmaceutical Services (WST) shares this exact severity score of 5.0, down -24.0% over 1,575 days.
Just below the threshold, several companies carry a severity score of 4.9. EQT Corporation (EQT) is down -23.5% over 65 days, while Xylem (XYL) is down -23.5% over 176 days. Carvana (CVNA) is down -33.4% over 141 days, and DoorDash (DASH) is down -34.4% over 199 days. Any further downward price pressure will likely push these four assets into the red zone.
Down and Historically Low Versus Their Own Record
Several assets with deep drawdowns are currently trading at valuation multiples that sit near the bottom of their own historical ranges. The table below outlines these companies, detailing their current peak-to-trough declines alongside their historical price-to-sales (P/S) percentiles.
| Symbol | Drawdown | Severity | P/S today vs median | P/S percentile |
|---|---|---|---|---|
| CTSH | -56.6% | 10.1 | 0.94 vs 2.8 | 0.2 |
| TTD | -86.6% | 14.2 | 3.0 vs 18.8 | 0.2 |
| EPAM | -88.8% | 19.0 | 0.86 vs 3.7 | 0.3 |
| G | -49.3% | 9.6 | 0.97 vs 2.1 | 0.3 |
| JD | -74.0% | 12.1 | 0.20 vs 0.77 | 0.3 |
| CHTR | -82.2% | 18.2 | 0.32 vs 1.6 | 0.4 |
| CMCSA | -55.5% | 10.5 | 0.69 vs 1.8 | 0.4 |
| WDAY | -59.8% | 10.4 | 3.2 vs 12.2 | 0.4 |
percentiles compare each stock only with its own history and are not recommendations.
Mega-Cap Drawdown Analysis
The shift of Apple (AAPL) into the yellow zone is a key trend to monitor. While a severity score of 2.0 is on the lower end of the yellow spectrum, it indicates that the stock's current pullback is beginning to show historical persistence. This movement contrasts with the broader tech sector, as represented by Vanguard Information Technology ETF (VGT), which managed to improve its severity score to 1.8.
The divergence suggests that while mid-cap and select large-cap tech names are finding stability, some of the largest index components are starting to drag. If Apple's drawdown duration extends further, its rising severity score could begin to pull broader indices back down.
What to Watch Next Week
Heading into the second week of July, the primary focus remains on the cluster of stocks sitting right at the red zone border. EQT Corporation (EQT), Xylem (XYL), Carvana (CVNA), and DoorDash (DASH) all carry a severity score of 4.9. A single negative trading session could easily push all four of these names into the red zone.
We will also monitor whether Applied Optoelectronics (AAOI) and Barnes Group (B) can sustain their positions at a severity score of 5.0 or if they will slide deeper into the red zone. With 44.1% of all tracked assets already in the red zone, the market remains highly vulnerable to prolonged drawdowns.
Get the weekly drawdown digest
A weekly summary of fresh drawdown analysis, market severity changes, and watchlist setup ideas. No per-article blasts.
Frequently Asked Questions
How far has the market fallen from its all-time high?
While individual assets like UP are down 100% from their all-time highs as of July 4, 2026, the broader market is experiencing widespread, severe pullbacks. Out of 801 tracked assets, 353 of them are sitting in the red zone due to deep price declines. This means 44.1% of the entire coverage universe is struggling with significant losses.
What is the market's drawdown?
The overall average Drawdown Severity Score across all 801 tracked assets stands at 5.4 as of July 4, 2026. This score places the broader market average firmly in the red zone, which is defined as any score of 5.0 or higher. Historically, entering this zone indicates a combination of deep price declines and prolonged recovery timelines across the coverage universe.
How long has the market been in a drawdown?
The market is experiencing a prolonged period of distress, with individual assets like UP falling for approximately 1,800 days as of July 4, 2026. A total of 353 assets have been stuck in the red zone for an extended duration, indicating that recovery timelines are stretching out. This represents a significant, long-term systemic pullback across 44.1% of the tracked database.
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.