This is definitely a market warning signal!
Since this occurred so soon after a new high, it triggered a Titanic Syndrome signal. Ignoring the silly names, the Titanic and Hindenburg Omen signals highlight unusual market conditions when breadth is not necessarily confirming the rosy outlook given by a rising market index.
During the past 30 days, the Nasdaq has now recorded 6 of these signals, the most since last November. Other than a very brief dip, that was a horribly failed warning sign of future market weakness. But the other signals were mostly successful during this bull market.
It’s important to mention that at other times in the past 30 years, like in 2000 and 2007, the Nasdaq saw clusters of 15 or more signals in a 30-day period. So currently, the total is still relatively low compared to those peaks.