NYSE sees panic-like stock selling, Arms Index suggests

Selling in NYSE-listed stocks are exhibiting panic-like tendencies for the first time in over three months, according to the Arms Index, while Nasdaq selling appears calm and collected. The Arms, a volume-weighted market breadth indicator, usually rises when the stock market declines, the magnitude of selling in declining stocks tends to be greater than the magnitude of buying in stocks gaining ground. When that happens, the Arms Index tends to rise above 1.000; market technicians view a rise above 2.000 as suggesting panic-like activity. The NYSE Arms is at 2.287, on track to close above 2.000 for the first time since May 1, and was at the highest level since Dec. 4, 2018, while the Nasdaq Arms is at 0.993. The number of declining stocks is outnumbering advancers by 2.13 to 1 on the NYSE and by 1.79 to 1 on the Nasdaq. The volume of declining stocks is above advancing stocks by 4.87 to 1 on the NYSE and by 1.78 to 1 on the Nasdaq. Meanwhile, the Dow Jones Industrial Average was down 226 points, or 0.9%, the S&P 500 was losing 0.7% and the Nasdaq Composite was shedding 0.5%. On Dec. 4, 2018, the Dow had plunged 799 points, or 3.1%.

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