Thursday, February 02, 2006

Quick Finding With the NYSE TICK

An upcoming article on the Trading Markets site will detail expectations when one-day declines are accompanied by very negative Adjusted TICK values. The Adjusted TICK is a staple of analysis on my personal site; it is the NYSE TICK adjusted to create a zero mean. The gist of the article is that days such as Thursday, which had a very weak Adjusted TICK and a decline in excess of 1%, have weaker expectations the following day than 1% declining days with stronger TICK readings. This, along with the relatively broad momentum weakness in the market, has me more cautious about the market upside than I would normally be after hitting a five-day low. (See previous entry).