Midday Check of Market Internals Sep 9

Sep 9, 2009: 10:58 AM CST

As we head into the lunch hour on September 9th with a strong market rally underway, let’s take a look at the major market internals as viewed from custom screens in TradeStation:

Let me decode the chart for you –

In the upper panel, we have the TRIN (Trader’s Index) which reflects whether volume is ‘flowing’ into advancing or declining issues.   A TRIN beneath 1.0 is ‘bullish’ and a TRIN above 1.0 is ‘bearish.’

Beneath that, we have the actual Advance/Decline chart, in which Green reflects the $ADV or number of advancing stocks on the NYSE, and the Red line reflects the $DECL or declining stocks on the NYSE.

The $ADD chart is simply the “Advance minus Decline Differential” or the subtracted value of these two… which in this case shows roughly 1,450 more stocks are positive on the day than negative (2,200 stocks are up vs 750 that are down as of noon, EST).

The next chart shows the Up-Volume (green) as compared to the Down-Volume (red).

Finally, we’re seeing the top Sector Performance (AMEX Sector SPDRs) to see which sectors are outperforming or under-performing the others.

The picture across the board is bullish.

The picture of bullishness is what we see above:

A Falling TRIN;
many more advancers relative to decliners;
a differential above 1,000;
almost a 4 to 1 relationship of greater “up” volume as compared to “down” volume;
and sector strength coming from the Financials, Industrials, Consumer Discretionary (retail), and Energy.

For reference, I overlay the TICK on my price charts, so I’m comparing relative TICK values both to each other and prior/current price swing highs and lows.

Looking under the hood can sometimes give us clues that help us determine the strength (or weakness) of the pure price movement we’re seeing before us.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

4 Comments

4 Responses to “Midday Check of Market Internals Sep 9”

  1. smpchan Says:

    OT here: do you think the recent market bullishness has enough powder to reverse some of the few head and shoulder pattern such as AXE on low volume?

  2. smpchan Says:

    OT here: do you think the recent market bullishness has enough powder to reverse some of the few head and shoulder pattern such as AXE on low volume?

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