Despite the firm early selloff in the major indexes from record highs Thursday, the Arms Index, used to measure buying or selling intensity, suggests investors are 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 has slipped to 0.751 and the Nasdaq Arms is at 0.827, a sign that buyers on the dip have been slightly more aggressive than sellers. The Nasdaq Composite Index earlier was threatening to fall the most since Aug. 17, but has since pared that earlier slide, while the Dow Jones Industrial Average and the S&P 500 have seen their morning declines, which saw them both on track to fall by the most since Sept. 5, abate. Those moves came as the CBOE Volatility Index , a measure of implied volatility, jumped 8% in morning trade.
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