Despite the firm selloff in the major indexes from record highs Thursday, the Arms Index, used to measure buying or selling intensity, suggested investors were in a buying mood. On big down days, the Arms tends to rise above 1.000, as the ratio of down volume to up volume rises relative to the ratio of declining stocks to rising stocks. But the NYSE Arms slipped to 0.699–though the Nasdaq Arms approached 1 at 0.997–a sign that buyers on the dip have been more aggressive than sellers. The Nasdaq Composite Index fell the most since late October, as did the Dow Jones Industrial Average and the S&P 500 . Those moves came as the CBOE Volatility Index , a measure of implied volatility, jumped 7.7% to trade at 10.53, still far below its historically average at around 19.
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From:: Stock Market News