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Investor Alert

Jan. 14, 2021, 10:21 a.m. EST

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

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 (NASDAQ:COMP) was up 0.5% at 13,194, the Dow Jones Industrial Average (DOW:DJIA) was trading around a record high, up 0.5% at 31,202, while the S&P 500 index (S&P:SPX) was climbing 0.3% at 3,822. The so-called panic selling in the Nasdaq may indicate that a broader array of technology-related stocks are rising, even as large-capitalization tech names were down, including Apple Inc. (NAS:AAPL) and Microsoft Corp. (NAS:MSFT) .

Link to MarketWatch's Slice.