With three of the four trillion dollar stocks (Microsoft, Amazon.com, and Alphabet) in the Nasdaq trading at all-time highs today, it’s no surprise that both the Nasdaq 100 and broader Nasdaq Composite are both at record highs this morning. From a breadth perspective, though, neither index is as strong.

For starters, even though the Nasdaq 100 is at new highs, the cumulative A/D line is marginally lower than its high last week. It’s far from a major divergence but does illustrate the fact that some of the largest stocks are carrying the weight of everyone else.

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The divergence between the Nasdaq 100’s price and cumulative A/D line is hardly wide enough to get working up over at this point, but for the broader Nasdaq Composite itself, which includes a much larger universe of smaller companies, the divergence is much more notable. In this instance, the Nasdaq’s cumulative A/D line saw a much larger pullback than price during the most recent pullback, and the magnitude of the bounce last week and into today has been relatively anemic. This is a much more notable divergence, and one that should it continue to drag on will become a concerning trend. 

(Click on image to enlarge)