Weekly Drawdown Report: July 25, 2026

QQQ Enters the Yellow Zone as 45% of Stocks Hit Red

BE Semiconductor Industries N.V. (BESIY) is down 31% from its peak as of July 25, 2026, and has been in this drawdown for approximately 40 days. The stock carries a Drawdown Severity Score™ of 5.0, placing it on the threshold of the red zone. Across our broader database of 838 tracked assets, 374 holdings now reside in the red zone, representing 44.6% of the entire market.

Our data at DrawdownAlerts shows a market undergoing significant structural shifts. The average Drawdown Severity Score™ across all tracked listings has reached 5.5, indicating widespread downward pressure. Investors are tracking these shifts closely as major indices and individual equities adjust to changing macroeconomic conditions.

Market-Wide Drawdown Distribution

To understand the current market health, we look at how our 838 tracked assets are distributed across our three risk zones. The red zone, which represents assets with a Drawdown Severity Score™ of 5.0 or higher, currently contains 374 assets. This means 44.6% of all tracked securities are experiencing severe or prolonged drawdowns as of July 25, 2026.

The yellow zone contains 214 assets, representing 25.5% of our database. These assets carry a Drawdown Severity Score™ between 2.0 and 5.0, indicating moderate pullback activity. Many of these listings are either in the early stages of a correction or are beginning to recover from deeper lows.

Finally, the green zone holds 250 assets, making up 29.8% of the total. These securities maintain a Drawdown Severity Score™ below 2.0, representing relative strength and minimal distance from recent highs. This distribution highlights that less than a third of the market is operating under normal, low-risk conditions.

The average Drawdown Severity Score™ of 5.5 confirms that the typical asset is experiencing a meaningful correction. This metric has drifted higher as key sectors show signs of fatigue. We continue to monitor these ratios to identify broader systemic trends.

Key Zone Changes This Week

Several high-profile assets crossed key boundaries during the week ending July 25, 2026. Most notably, the Invesco QQQ Trust (QQQ) crossed from the green zone to the yellow zone, posting a Drawdown Severity Score™ of 2.0. This shift reflects growing pressure on large-cap technology shares.

The Invesco NASDAQ 100 ETF (QQQM) mirrored this movement, also transitioning from green to yellow with a Drawdown Severity Score™ of 2.0. This indicates that the broader tech sector is losing its near-peak momentum. According to Bloomberg, institutional rotation out of high-growth tech has accelerated over recent sessions.

In contrast, Berkshire Hathaway Inc. (BRK-A) demonstrated defensive strength by moving from the yellow zone to the green zone. The conglomerate registered a Drawdown Severity Score™ of 1.9, showing that value-oriented mega-caps are attracting capital. This divergence highlights a bifurcated market where defensive assets are outperforming growth.

Other notable shifts include C.H. Robinson Worldwide, Inc. (CHRW), which slipped from green to yellow with a Drawdown Severity Score™ of 2.0. The logistics specialist is facing renewed headwinds as shipping volumes normalize. Similarly, SUNB (SUNB) fell from green to yellow, registering a Drawdown Severity Score™ of 2.4.

On the recovery side, International Paper Company (IP) improved from the red zone to the yellow zone with a Drawdown Severity Score™ of 4.8. This transition suggests that the packaging giant is beginning to stabilize after a prolonged period of distress. Additionally, Take-Two Interactive Software, Inc. (TTWO) climbed from yellow to green, posting a severity score of 2.0.

We also saw Smurfit Westrock plc (SW) transition from yellow to green with a Drawdown Severity Score™ of 1.9. Nasdaq, Inc. (NDAQ) followed a similar path, moving from yellow to green with a severity score of 1.8. Meanwhile, Waters Corporation (WAT) weakened, moving from green to yellow with a severity score of 2.3.

The Most Severe Market Drawdowns

The most extreme drawdowns in our database represent companies facing severe long-term secular or structural challenges. Wheels Up Experience Inc. (UP) leads all tracked assets with a massive Drawdown Severity Score™ of 22.1. The private aviation firm is down 99.7% from its peak as of July 25, 2026, a decline that has lasted 1832 days.

Close behind is EnCore Energy Corp. (EU), which carries a Drawdown Severity Score™ of 20.9. The company is down 87.6% from its high, with its drawdown extending over an incredible 5642 days. This reflects a multi-decade struggle to reclaim historical valuation peaks.

Nano Dimension Ltd. (NNDM) is also experiencing extreme distress, carrying a Drawdown Severity Score™ of 19.6. The 3D printing technology firm is down 98.3% over a span of 3772 days. This long-term capital destruction highlights the risks associated with speculative growth sectors.

In the mega-cap space, Charter Communications, Inc. (CHTR) remains heavily depressed with a Drawdown Severity Score™ of 18.8. The cable and broadband provider is down 85.0% from its peak, with the decline lasting 1782 days. Competition from 5G wireless home internet has severely pressured the business model, according to industry reports by Reuters.

Finally, American International Group, Inc. (AIG) rounds out the top five with a Drawdown Severity Score™ of 18.8. The insurance giant is down 93.6% from its peak, a drawdown that has persisted for 9352 days. This represents the longest-running drawdown in our top-five list, stretching back to the pre-2008 financial crisis era.

Assets Approaching the Red Zone

Several assets are hovering just below the critical Drawdown Severity Score™ threshold of 5.0, which marks the entrance to the red zone. Alamo Group Inc. (ALG) currently registers a Drawdown Severity Score™ of 5.0, down 28.5% over 343 days as of July 25, 2026. The industrial equipment manufacturer is experiencing a slow, grinding correction as global infrastructure spending moderates.

As noted earlier, BESIY sits at a Drawdown Severity Score™ of 5.0, down 30.8% in just 39 days. The rapid nature of this decline highlights the high beta and cyclical volatility of the semiconductor capital equipment space. A short duration combined with a steep drop results in a high Drawdown Severity Score™ very quickly.

Colliers International Group Inc. (COLO) presents a different profile, carrying a severity score of 4.9. The real estate services firm is down 19.6% over a massive 5733 days. This prolonged duration keeps its severity score elevated despite the relatively modest percentage decline.

Similarly, Entegris, Inc. (ENTG) carries a Drawdown Severity Score™ of 4.9, down 29.8% over a brief 28 days. This rapid sell-off in semiconductor materials mirrors the broader weakness seen in BESIY. Investors are reassessing high-growth multiples in the chip supply chain as global demand forecasts soften.

Other assets on the precipice of the red zone include Jack Henry & Associates, Inc. (JKHY), with a Drawdown Severity Score™ of 4.9 and a drawdown of 25.4% over 1443 days. Barnes Group Inc. (B) also holds a Drawdown Severity Score™ of 4.9, down 29.9% over 172 days. Meanwhile, Fox Corporation (FOXA) is down 27.3% over 194 days, carrying a severity score of 4.9.

Finally, Newmont Corporation (NEM) is approaching the threshold with a Drawdown Severity Score™ of 4.8. The gold mining giant is down 29.4% over 172 days. Fluctuations in precious metals prices have kept the equity under pressure despite elevated global inflation.

Mega-Cap and Index Check

The behavior of mega-cap indices provides crucial context for the broader market's average Drawdown Severity Score™ of 5.5. When major benchmarks like QQQ slip into the yellow zone, it signals that the largest companies are no longer shielding the market from drawdowns. The transition of QQQ and QQQM to a Drawdown Severity Score™ of 2.0 indicates a broad-based cooling in growth equities.

This index-level weakness is offset slightly by defensive giants like Berkshire Hathaway. The move of BRK-A to the green zone with a Drawdown Severity Score™ of 1.9 shows that capital is actively seeking shelter in cash-rich, diversified conglomerates. This rotation helps keep the overall market from falling into a deeper systemic crisis.

However, with 44.6% of all tracked assets in the red zone, the underlying market health remains fragile. The index-level metrics often mask the deeper drawdowns occurring in mid-cap and small-cap segments. Our data suggests that while the major indices are only starting to show yellow flags, the average individual stock is already deeply corrected.

What to Watch Next Week

As we look ahead, several assets are positioned for potential zone transitions. International Paper Company (IP) will be closely watched to see if its recovery from the red zone can be sustained. Its current Drawdown Severity Score™ of 4.8 puts it just below the red threshold, meaning any renewed selling could quickly push it back down.

We will also monitor the semiconductor duo of BESIY and ENTG. Their extremely short drawdown durations of 39 days and 28 days, respectively, mean their Drawdown Severity Scores™ are highly sensitive to daily price movements. If the semiconductor sector stabilizes, these scores could fall rapidly, but further declines will cement their positions deep inside the red zone.

Lastly, the performance of QQQ and QQQM will dictate whether the broader market's average Drawdown Severity Score™ of 5.5 begins to march higher. If these tech-heavy indices continue to deteriorate, more component stocks will likely cross into the yellow and red zones. We will continue to track these metrics to provide objective, data-driven insights into market risk.