The Nasdaq may be down 2%, but the Arms Index shows no panic selling of stocks


Despite the broad, sharp selloffs in the Big 3 stock market indexes, market internals suggest there is no panic in the selling, and there may even be signs that investors are looking to buy on the dip. The NYSE Arms Index, a volume-weighted breadth measure that tends to rise above 1.000 during market selloffs and fall below 1.000 during rallies, is actually down to 0.843, while the Nasdaq Arms is down to 0.715. Many Wall Street technicians suggest Arms readings of 2.000 and above indicate panic-like selling behavior, while readings below 0.500 indicate panic buying. Currently, number of declining stocks is outnumbering advances by a 5.2-to-1 margin on the NYSE and by a 4.7-to-1 margin on the Nasdaq, while share volume in declining stocks is outnumbering up volume by a smaller 4.4-to-1 on the Big Board and by 3.3-to-1 on the Nasdaq. Meanwhile, the Dow Jones Industrial Average DJIA, -1.40% is falling 502 points, or 1.4%, the S&P 500 SPX, -1.64% is down 1.7% and the Nasdaq Composite COMP, -2.22% is shedding 2.2%.

This article was originally published by Read the original article here.

Previous articleBank of America’s stock falls ahead of earnings, in wake of Goldman and JPMorgan disappointments
Next articleFutures Movers: Crude oil settles at its highest price since 2014 after Abu Dhabi oil facility attack


Please enter your comment!
Please enter your name here