The Dow Jones Industrial Average may be surging toward its biggest price gain in a year, but market internal data suggest the buying is being done in a very calm-and-collected way. The NYSE’s Arms Index, a volume-weighted breadth measure that tends to decline below the equilibrium 1.000 level during market rallies, as the proportion of total volume in advancing stocks to volume in declining stocks is usually higher than the proportion of the number of advancing stocks to the number of declining stocks. But in afternoon trade Thursday, with the Dow up 307 points, or 1.3%, to a record high, the Arms is at a very flat 1.020, suggesting there is no sense of urgency to buy stocks that are rising. On the Nasdaq exchange, there is some scrambling to buy gainers, as the Nasdaq Arms Index was down to 0.657. The Nasdaq Composite was up 0.7%.
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From:: Stock Market News