Thursday, September 24, 2009

Looking at Breakouts in NYSE TICK

Note how the NYSE TICK and its moving average (blue line) have stayed below the zero level (purple horizontal line) for most of the session. The breakout to new morning lows in TICK after the weak 9 AM CT housing number showed a shift in selling pressure. We generally think of breakout trades and opening range breakouts as a function of price movement. Breakouts in TICK, however, can indicate an important shift in intraday market sentiment.