At the time of this writing (July 15, 2004), approximately 2,800 stocks were being traded on the NYSE. Here is some information about two indicators that measure movement on the NYSE.

NYSE TICK ($TICK) is not an indicator that receives a lot of attention from investors or the financial media. Market technicians use this indicator primarily to gauge the buying and selling pressure on the New York Stock Exchange [NYSE].

However, not all technicians use the index in the same manner. In fact, there are really three ways to use this tool:

• To measure the buying or selling pressure at the close of trading
• To gauge the strength of a market advance or decline over time
• As an indicator of overall levels of bullish and bearish sentiment

$ADD measures the net advancing stocks. It is measured as advancing stocks - declining stocks.

Some Observations

$TICK and $ADD measure the 2,800 traded stocks on the NYSE. This means that either indicator can have a maximum value of +2,800 and a minimum value of -2,800. These are theoretical values, and I don't believe they have ever actually been seen. However, if I can be shown to be wrong on this, I will stand corrected.

Maximum values for $TICK are usually in the +1,000 to +1,200 and -1,000 to -1,200 area, with 1,500 and -1,500 considered extremes.

$ADD has extremes that are generally at +2,000 and -2,000 but higher and lower values are also seen.

Because $ADD and $TICK measure the entire portfolio of stocks traded on the NYSE, and the S&P 500 measures the 500 largest stocks, we must be careful when using these indicators as leaders for movements in the ES.

*Reprinted (and modified) with permission from Guy Ellis
**This is taken from an article by Frederic Ruffy.