Thread: The Nasdaq is exhibiting signs of panic-like buying--not selling--even as the stock m

The Nasdaq is exhibiting signs of panic-like buying--not selling--even as the stock market gets rocked Thursday

Trading in the Nasdaq was exhibiting panic-like-buying behavior Thursday midday, even as the broader market got rocked lower on fears of growing cases of coronavirus in the U.S. and a gloomy economic outlook from the Federal Reserve. That bearish combination has pushed the Nasdaq Composite down 3.7% in regular trade on the session at 9,645, amid a broad selloff of equities, however, the Nasdaq Arms Index, a volume-weighted breadth measure, fell to 0.389, while many on Wall Street see declines below 0.500 as suggesting panic buying. The Arms Index is calculated by dividing the ratio of the number of advancing stocks over decliners by the ratio of the volume of advancing stocks over declining volume. As the stock market rises, the Arms often falls below 1.000, as the buyers rush into advancing stocks. The current dynamic suggests that investors may continue to adhere to a trend of buying large-capitalization technology-related names that have helped the Nasdaq and the Nasdaq-100 index outperform their peer indexes over the past several weeks. The number of stocks declining on the Nasdaq on Thursday outnumbered decliners by nearly 15 to 1, while volume in advancing stocks represented 15% of total volume on the Nasdaq. Meanwhile, the Dow Jones Industrial Average was down 1,455 points, or 5.4%, at 25,522, while the S&P 500 index was off 4.6% at 3,044. The Dow was looking at potentially its worst daily decline on a percentage basis since March, if losses hold to the close.

https://finance.yahoo.com/m/29b2a796...html?.tsrc=rss