Trading in the Nasdaq was exhibiting panic-like-buying behavior Monday late morning, even as the broader market softened in the last trading session of November. The Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -0.87% was sinking 0.8% at 12,111, while the Nasdaq Arms Index, a volume-weighted breadth measure, fell to 0.322. Many on Wall Street see declines below 0.500 as suggesting panic buying. The Arms Index is calculated by dividing the ratio of the number of advancing stocks over decliners by the ratio of the volume of advancing stocks over declining volume. As the stock market rises, the Arms often falls below 1.000, as the buyers rush into advancing stocks. The current dynamic suggests that investors may continue to adhere to a trend of buying large-capitalization technology-related names as a haven proxy in times of uncertainty. The number of stocks declining on the Nasdaq on Monday outnumbered advancers by nearly 2.4 to 1, but volume in advancing stocks represented 56% of total volume on the Nasdaq. Meanwhile, the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.57% was down over 400 points, or 1.4%, at 29,502, while the S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.72% was trading 0.9% lower at around 3,605. Despite, the declines, the Dow may still register is bet monthly gain since 1987, while both the Dow and S&P 500 were aiming for their best Novembers since 1928.
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