Thursday, March 25, 2010

NYSE TICK as a Gauge of Intraday Swings

Here we see a four-hour moving average of NYSE TICK (pink line) plotted against SPY (blue line) from March 17th through today's session.

Such a moving average of TICK acts as a short-term overbought-oversold measure. It also highlights when stocks might be making new lows and new highs when selling and buying pressure are waning--nice indications of potential reversals.