This was published Tuesday 15 June 2009 on TraderFeed by Brett Steenbarger. Tick is the difference between upticks(when stocks rise) and downticks (falling prices). Traders ignore Tick readings between -400 and +400. Extreme readings of +1000 or -1000 are often triggers for mean reversion trades.
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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