Selling on the Nasdaq reached panic-like proportions Friday afternoon with less than an hour left in regular trade, as the exchange’s Arms index rose. The Arms is a volume weighted breadth measure, that tends to rise when the broader market falls, as the intensity of the selling in declining stocks is usually greater than the intensity of buying in rising stocks. Levels above 2.000 are considered panic-like activity. The Nasdaq Composite Index
was off 3% at 6,969. The number of advancing stocks compared against decliners was at 2,108 to 787, pushing the Arms index on the exchange to 2.068. Meanwhile, the S&P 500 index
was trading 2.2% lower at 2,635 and the Dow Jones Industrial Average
tumbled 595 points, or 2.3%, at 24,374 on Friday. All three benchmarks were looking at their worst weekly drops since the period ended March 23, down nearly 5%, according to FactSet data.
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