By Mark DeCambre
Panic-like behavior was starting to set in on Wall Street, at least from a technical perspective.
Trading in New York Stock Exchange-listed stocks at midday Monday exhibited panic-like-selling action as investors endured a selloff that was gathering steam to start the week, adding to a bruising month for bullish investors, sparked by concerns about monetary policy, lofty stock valuations and inflation.
The NYSE 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 2.133 for NYSE-listed shares. Many technicians say a rise to at least 2.000 suggests panic-like selling behavior.
The reading comes as the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.03% was off 3.1%, or over 1,000 points, at 33,204, looking at its sharpest one-day fall since 2020; the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.01% was off nearly 4% at 4,227; and the Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -0.30% was trading 4.8% lower at 13,101.
The Nasdaq ARMs Index also was showing panic-like selling at 2.160, at last check.