Monday, February 7, 2011

Rounding tops and the TICK Index

 Today, thus far is an unusual day in that the low POMO submitted : accepted ratio hasn't brought in a melt-up of Primary Dealer funds. This is peculiar and while isn't a definitive sign (certainly the day is not over) it's worth noting. Also worthy of note is a near perfect intraday rounding top. The price pattern is one component, the second is the rounding volume. Taken with earlier posts, this also is not a definitive sign of anything, but worth noting.

Today's TICK Index is remarkably neutral, even somewhat negative and compared to other days, it is out of character. This is the tick of every stock in the NYSE either moving up or down. We see some significant action below zero-stocks moving down on that tick.

Taken altogether, if we do not see a melt up into the close, this may be a false breakout day so we want to watch the afternoon closing trade carefully. for those with Worden platforms, you can view the Tick index intraday on a 1-minute chart with the symbol "$TICK"

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