Although the Dow Jones Industrial Average tumbles toward the biggest price decline since May 2017, market internals suggest the selling may be broad-based and heavy, but is still no where near panic levels. The number of stock declining outnumber advancers by a 2,316-to-574 margin on the NYSE and by a 1,924-to-754 score on the Nasdaq exchange. Volume of declining stocks made up 87.1% of the total volume on the Big Board and 70.5% of the total on the Nasdaq. The Arms Index, a volume-weighted measure of breadth that tends to rise above 1.000 as the stock market falls, rose to 1.718 on the NYSE but was nearly flat at 0.958 on the Nasdaq. Many who follow the Arms believe it takes a rise above 2.000 to imply panic selling, or capitulation by bulls, which could suggest a bounce could be coming. At current readings, the Arms Indexes suggest the selling isn’t quite at capitulation levels, particularly on among Nasdaq stocks. The Dow was down 235 points, or 0.9%, while the Nasdaq Composite shed 0.5% and the S&P 500 lost 0.7%.
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