Nasdaq Composite shows signs of panic buying even as Dow sees 400 point slippage Monday noon



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Trading on the Nasdaq exhibited panic-like buying behavior late Monday morning, even as the market as a whole eased in the last trading session in November. The Nasdaq Composite COMP,
-0.58%
was down 0.8% to 12,111, while the Nasdaq Arms Index, a volume-weighted width measure, fell to 0.322. Many on Wall Street see dips below 0.500 as suggesting panic buying. The armaments index is calculated by dividing the ratio of the number of increasing shares to the decreases by the ratio of the volume of increasing shares to the decreasing volume. As the stock market rises, arms often drop below 1,000 as buyers rush to push stocks up. Current momentum suggests that investors may continue to embrace a trend of buying large-cap tech-related stocks as a safe haven in times of uncertainty. The number of declining stocks on the Nasdaq on Monday exceeded the number of advancers by nearly 2.4 to 1, but the volume of advancing stocks was 56% of the total volume on the Nasdaq. Meanwhile, the Dow Jones Industrial Average DJIA,
-1.22%
fell more than 400 points, or 1.4%, to 29,502, while the S&P 500 SPX index,
-0.79%
was trading 0.9% lower to around 3,605. Despite the declines, the Dow could still register its monthly gain since 1987, as the Dow and S&P 500 both aimed for their best November since 1928.

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