Tuesday, June 16, 2009

Sentiment Holding Up Well: A Look at Cumulative TICK


Interestingly, though we've moved back into May's trading range in the S&P e-mini (ES) contract (pink line above), the Cumulative NYSE TICK has stayed well above May levels. Continued strength in Cumulative TICK would suggest to me that we're experiencing a correction in a bull market, not the start of a renewed bear.
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2 comments:

GS751 said...

I'm thinking we could easily fall to 880 by the end of june... But remember tomorrow would be a 4th down day in a row on the $SPX....

MACDOW said...

Dr Brett
Also worth a mention so far given the break down there has been low volume. If this were a larger break of the up trend a much higher volume would be expected. Yes I know its summer and half the traders are supposedly on holiday somewhere but usually a break like this would have higher volume.
The big down move should happen later in the year towards August...

The only way to see is to watch your screens. Trade what you see not what you think.

Thanks for the great blog.

Regards
David