Weekly Drawdown Report: August 1, 2026

385 Stocks Are Now in the Red Zone as of August 1, 2026

Wheels Up Experience Inc. (UP) is down 100% from its all-time high as of August 1, 2026, and has been falling for approximately 1,840 days. The Drawdown Severity Score™ stands at 22.1, placing it in the red zone as the most severe drawdown among the 876 tracked assets in our database. Across our platform, 385 assets currently sit in the red zone, representing 43.9% of all tracked instruments.

Market-Wide Drawdown Distribution

Our data shows that the broader market is experiencing a significant level of stress as of August 1, 2026. Out of 876 tracked assets on the DrawdownAlerts platform, the average Drawdown Severity Score™ has reached 5.3. Because a score of 5.0 or higher designates the red zone, this average indicates that the typical tracked asset is currently experiencing an elevated drawdown.

The distribution across our three key zones reveals a market heavily weighted toward the high-severity end. Currently, 385 assets, or 43.9% of our universe, are categorized in the red zone. The yellow zone, which represents moderate drawdowns with a severity score between 2.0 and 5.0, contains 219 assets, or 25.0% of the total. Meanwhile, only 272 assets, representing 31.1% of the database, remain in the green zone with a severity score under 2.0.

This distribution indicates that more than two-thirds of the tracked market is dealing with notable pullbacks from historical highs. The high concentration of assets in the red zone suggests that many equities have suffered prolonged or deep corrections. This systemic pressure is reflected in the elevated average Drawdown Severity Score™ of 5.3 across all sectors.

To provide a clear overview of the market's current state, we have compiled the aggregate zone distribution data in the table below:

Weekly Zone Transitions

The week ending August 1, 2026, brought significant movement across zone boundaries, highlighting shifting momentum in several key sectors. In total, ten notable assets crossed from one zone to another, reflecting both worsening pullbacks and isolated recoveries.

Three assets transitioned into the high-risk red zone this week, signaling that their drawdowns have reached critical levels. International Paper Company (IP) crossed from the yellow zone to the red zone, with its Drawdown Severity Score™ rising to 5.2. Semiconductor manufacturer Micron Technology (MU) also entered the red zone with a Drawdown Severity Score™ of 5.1. Additionally, Barnes Group (B) reached the threshold exactly, moving from yellow to red with a Drawdown Severity Score™ of 5.0.

Conversely, six assets experienced deteriorating trends that pushed them from the green zone into the yellow zone. This group includes Air Products and Chemicals (APD) with a severity score of 2.2, and Exxon Mobil Corporation (XOM) with a Drawdown Severity Score™ of 2.1. Industrial supplier Cintas Corporation (CTAS) also slipped to yellow with a Drawdown Severity Score™ of 2.2. Utility companies WEC Energy Group (WEC) and NiSource Inc. (NI) registered a severity score of 2.1 and a Drawdown Severity Score™ of 2.2 respectively, while agricultural giant Archer-Daniels-Midland Company (ADM) landed at a Drawdown Severity Score™ of 2.2.

On a positive note, only one major tracker managed to exit a warning zone this week. The iShares U.S. Technology ETF (IYW) transitioned from the yellow zone back to the green zone, finishing the week with a Drawdown Severity Score™ of 2.0. This shift indicates a stabilization in the broader technology sector, even as individual components like Micron Technology continue to struggle.

The following table outlines the specific zone transitions and scores recorded as of August 1, 2026:

Analyzing the Highest Severity Drawdowns

The most extreme drawdowns in our database represent assets that have suffered massive value destruction over years, or even decades. These assets carry the highest Drawdown Severity Score™ ratings on our platform, reflecting both the depth of their price drops and the prolonged duration of their recovery attempts.

At the top of this list is Wheels Up Experience Inc. (UP), which carries a Drawdown Severity Score™ of 22.1. The stock is down -99.8% from its peak, and its drawdown has persisted for 1,837 days as of August 1, 2026. This represents a near-total loss of value over a five-year period, with no signs of recovery.

Following closely is EnCore Energy Corp. (EU), which carries a severity score of 21.0. This asset is down -88.1% from its historical high, with a drawdown duration spanning an extraordinary 5,647 days. This multi-decade correction highlights how long some assets can remain depressed after reaching historic peaks.

Nano Dimension (NNDM) occupies the third spot with a Drawdown Severity Score™ of 19.6. The stock is down -98.3% from its peak, and has been mired in this pullback for 3,777 days. This duration represents over ten years of continuous trading below its all-time high.

American International Group (AIG) presents the longest active drawdown duration in our entire database, standing at 9,357 days as of August 1, 2026. The insurance giant remains down -93.6% from its peak, resulting in a Drawdown Severity Score™ of 18.8. This historical drawdown dates back over 25 years, illustrating the permanent structural shifts that can impact legacy companies.

Finally, Charter Communications (CHTR) rounds out the top five with a severity score of 18.3. The cable and broadband provider is down -82.3% from its peak, and has been in this drawdown for 1,787 days. This significant pullback underscores the broader headwinds facing the traditional telecommunications and media sectors.

Stocks Approaching the Red Zone

An important segment of our database consists of assets that are currently sitting right on the border of the red zone. These stocks are experiencing worsening trends, with their Drawdown Severity Score™ ratings hitting either 5.0 or 4.9 as of August 1, 2026.

Four assets have reached a Drawdown Severity Score™ of exactly 5.0, placing them at the absolute threshold of the red zone. Abbott Laboratories (ABT) has been falling for 508 days, resulting in a drawdown of -23.6%. Avery Dennison Corporation (AVY) has a drawdown of -23.8% over 761 days. Applied Materials (AMAT) shows a highly aggressive sell-off, reaching a Drawdown Severity Score™ of 5.0 in just 25 days with a peak drawdown of -29.8%. Martin Marietta Materials (MLM) is also at 5.0, registering a severity score of 5.0 over 164 days with a drawdown of -25.8%.

Just below them, four additional assets carry a Drawdown Severity Score™ of 4.9, indicating they are one minor downward move away from entering the red zone. Xylem Inc. (XYL) is down -23.3% over 269 days, carrying a severity score of 4.9. Medical technology firm Becton, Dickinson and Company (BDX) has been in a slow, persistent decline of -21.7% over 1,094 days, carrying a Drawdown Severity Score™ of 4.9. Footwear company Crocs (CROX) is down -29.1% over a long duration of 1,713 days, carrying a Drawdown Severity Score™ of 4.9. Financial data giant S&P Global (SPGI) is down -22.2% over 345 days, carrying a Drawdown Severity Score™ of 4.9.

Sector and Industry Analysis

The data as of August 1, 2026, reveals distinct trends across different industries. The technology sector displays a notable divergence. While the sector-wide ETF, iShares U.S. Technology ETF, recovered to the green zone with a Drawdown Severity Score™ of 2.0, individual hardware and semiconductor components are experiencing severe pressure. Micron Technology entered the red zone with a Drawdown Severity Score™ of 5.1, and Applied Materials reached a Drawdown Severity Score™ of 5.0 in just 25 days. This rapid descent for Applied Materials highlights how quickly sentiment can shift in the semiconductor space.

We also see emerging weakness in traditional defensive and industrial sectors. Six companies moved from the green zone to the yellow zone this week, indicating that pullbacks are broadening. Air Products and Chemicals and industrial supplier Cintas Corporation both registered a severity score of 2.2. Utilities, often considered safe havens during market volatility, also showed signs of cooling. WEC Energy Group registered a severity score of 2.1, while NiSource Inc. finished the week at a severity score of 2.2.

Additionally, basic materials and agriculture are showing signs of stress. International Paper Company crossed into the red zone with a Drawdown Severity Score™ of 5.2. Agricultural processing giant Archer-Daniels-Midland Company entered the yellow zone with a Drawdown Severity Score™ of 2.2. These movements suggest that the current drawdown trend is not confined to high-growth sectors, but is instead affecting a wide range of cyclical and defensive industries.

What to Watch Next Week

Looking ahead to next week, we will closely monitor the group of eight stocks currently sitting on the edge of the red zone. Abbott Laboratories, Avery Dennison Corporation, Applied Materials, and Martin Marietta Materials are all poised directly on the 5.0 Drawdown Severity Score™ line. Any further market weakness could push these names deeper into the red zone, expanding the percentage of high-severity drawdowns in our database.

The four stocks sitting at a severity score of 4.9 (Xylem Inc., Becton, Dickinson and Company, Crocs, and S&P Global) are also key candidates for zone transitions. Becton, Dickinson and Company represents a particularly slow-burning decline, having spent 1,094 days in its current drawdown. In contrast, Applied Materials is a highly volatile situation, having reached the 5.0 threshold in just 25 days.

Finally, we will track whether the broader market's average Drawdown Severity Score™ of 5.3 begins to stabilize. The recovery of the iShares U.S. Technology ETF to a severity score of 2.0 suggests that large-cap tech could act as a stabilizing force. However, if the weakness in industrials, utilities, and materials continues to expand, the average severity score across our 876 tracked assets is likely to climb higher.