1️⃣ What is it today?
Recovery transitioning into Acceptance.
NDX has rebounded sharply from the July correction and is back near 30,000.
But the more interesting story is underneath price.

2️⃣ Thesis
Nasdaq's recovery is being confirmed by participation.
More than 70% of Nasdaq stocks are above their SMA20.
More importantly, 70% are also above their SMA200.
Advancing stocks represent 67% of the market, while 74% of Nasdaq volume is flowing through advancing stocks.
That is broad participation, not merely mega-cap index support.

3️⃣ What validates the thesis?
Volatility has normalized.
VIX/VIX3M = 0.80.
New highs exceed new lows 97 to 66, and breadth is improving while NDX recovers.
The sequence currently reads:
Stress ↓ → Participation ↑ → Buying pressure ↑ → Price repair
That's what a healthy recovery should look like.

4️⃣ What invalidates it?
The real test comes near the old highs.
NDX still needs to deal with roughly 30,000–30,500.
If price pushes through that area while breadth remains above 70% and new-high leadership expands, the market moves firmly into Acceptance.
If price reaches those highs while SMA20 participation and net new highs deteriorate, that would be the first meaningful divergence.