Dow's rally comes with panic-like buying, as NYSE's Arms falls to lowest level in 15 months
With the Dow Jones Industrial Average up 238 points in afternoon trade Wednesday, and over 1,000 points amid a 4-session win streak, market internal data is suggesting panic-like buying that hasn't been seen in 15 months. The NYSE Arms Index, a volume weighted breadth measure, fell to 0.447 in afternoon trade. The Arms Index tends to decline below 1.000 when the broader market rises, as the intensity of buyers of advancing stocks increases relative to the intensity of sellers of declining stocks. The number of advancing stocks on the NYSE outnumbered decliners 2,046 to 889, or by a 2.3-to-1 margin, while advancing volume exceeded declining volume 476.4 million shares to 92.4 million shares, or by a 5.2-to-1 margin. Many see Arms readings below 0.500 as implying panic-like activity. The last sub-.500 reading was Jan. 26, at 0.490, when the Dow peaked at 26,616.71. The current reading is the lowest seen since Nov. 9, 2016 when the Dow rallied 257 points; on Nov. 10, the Dow jumped another 218 points.