Panic-like selling emerges Monday as stock market tumbles and Dow skids over 1,000 points

A trader works at his computer terminal on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange, May 3, 2017 in New York. / AFP PHOTO / Bryan R. SmithBRYAN R. SMITH/AFP/Getty Images By bryan r. smith/Agence France-Presse/Getty Images

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 (DJIA) 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 (SPX) was off nearly 4% at 4,227; and the Nasdaq Composite Index (COMP) was trading 4.8% lower at 13,101.

The Nasdaq ARMs Index also was showing panic-like selling at 2.160, at last check.

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