The broader stock market is declining, but the Arms Index, a volume-weighted breadth measure, suggests the market is exhibiting buy-on-dip characteristics. The Arms Indexes for both the NYSE and Nasdaq are declining below 1.000, which usually occurs when the broader market is rising, as average volume in stocks gaining ground is higher than the average volume stocks that are declining. The Dow Jones Industrial Average DJIA, +0.00% is down 47 points and the Nasdaq Composite COMP, +0.14% is slipping 0.2%, while the S&P 500 SPX, +0.23% is little changed. The number of advancing stocks is outnumbering decliners by 1.74 to 1 on the NYSE and by 1.65 to 1 on the Nasdaq, but the volume in decliners is above volume in advancers by just 1.10 on the NYSE and by only 1.02 to 1 on the Nasdaq. The NYSE Arms Index is 0.639 and the Nasdaq Arms is at 0.636.
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