Monday, June 07, 2004

So far we're seeing all the hallmarks of a trend day higher.  A trend day is one that opens at the low and closes at the high, with minimal retracements during the day.  On these types of days, I watch the NYSE TICK for the best clues.  When the TICK reaches around +1000 or so, we should see no more than a 2-3 point pullback in the S&P afterwards.  When the TICK approaches zero, then buying pressure should come in and take us to new daily highs.  The TICK should rarely spend more than a few seconds below zero at any time.  These occur two-three times per month and are very difficult to fight against unless you try to scalp the small retracements.  Unless the structure we've seen so far changes (by violating the "rules" I noted above), I suspect we'll continue to see higher prices throughout the day. 11:53:30 AM