Tuesday, August 18, 2009

NYSE TICK: Gauging Intraday Sentiment

Here's a look at how intraday sentiment is shaping up so far this morning, as capture by NYSE TICK (above). Note that we've had several elevated positive TICK readings, but no values below -800, suggesting a lack of selling pressure. As a result, the short-term moving average of TICK (blue line above) is largely staying above the zero level. I note also in my Market Delta app that we're seeing more volume at the market offer than bid in the ES contract, also suggesting underlying buying interest.

You can see that we had one cluster of negative TICK readings before 9 AM CT and then another close to 9:30 AM CT. As long as those selling episodes occur at successively higher price levels, we also have to assume an underlying bullish tone to the day session.