Selling in Nasdaq-listed stocks has reached panic-like proportions, as the Nasdaq Composite COMP, -1.25% drops 1.3%, but the selling in NYSE stocks is showing characteristics usually associated with near panic-like buying. The Arms Index, which is a volume-weighted breadth measure that tends to rise above 1.000 during market declines, rose to 2.000 on the Nasdaq but fell to 0.586 on the NYSE. Many chart watchers view Arms readings above 2.000 as panic like, as volume in declining stock swells in proportion to the number of stocks that are declining. Meanwhile, declines below 0.500 are viewed as a sign of panic buying. On the Nasdaq, the number of declining stocks outnumbered advancers by a ratio of 2.57 to 1, while the ratio of declining volume to advancing volume was 5.13 to 1. On the NYSE, however, the ratio of decliners to advancers was 3.12 to 1, while the ratio of declining volume to advancing volume was just 1.83 to 1. The S&P 500 SPX, -0.69% fell 0.7% and the Dow Jones Industrial Average DJIA, -0.82% shed 212 points, or 0.8%.
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