Panic-like selling–not buying–surfaces in Nasdaq Composite trade Thursday morning

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Trading on Nasdaq Thursday morning was exhibiting panic-like-selling behavior, even as the broader market appeared to be rising on the prospects of further fiscal spending when President-elect Joe Biden is sworn in on Jan. 20. The Arms Index, a volume weighted breadth measure that tracks the ratio of advancing stock to declining stocks over the ratio of advancing volume over declining volume, was showing a reading of 2.390 for Nasdaq-listed shares. Many technicians say a rise to at least 2.000 suggests panic-like selling behavior. The reading comes even as the Nasdaq Composite Index was up 0.5% at 13,194, the Dow Jones Industrial Average was trading around a record high, up 0.5% at 31,202, while the S&P 500 index was climbing 0.3% at 3,822.
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