Oct
05

Cumulative TICK On Track to Close at Two-Month High

By on Tuesday, October 5th, 2010 at 3:15 pm

Cumulative TICK has been trending steadily higher throughout Tuesday’s session (see intraday chart) and currently stands at +81,000. A close over +72,000 will represent a 40-day high for this indicator, an intermediate-term bullish sign. Unusually strong Cumulative TICK readings traditionally lead to further upside for the stock market over the next two weeks. Here’s a look at the last 30 instances in which Cumulative TICK closed at a two-month high…

NYSE Cumulative TICK Hits a Two-Month High
07/22/10… S&P500 +2.9% two weeks later
07/20/10… S&P500 +3.4% two weeks later
07/07/10… S&P500 +0.9% two weeks later
03/05/10… S&P500 +1.9% two weeks later
02/02/10… S&P500 -0.4% two weeks later
12/23/09… S&P500 +2.2% two weeks later
12/01/09… S&P500 -0.1% two weeks later
07/15/09… S&P500 +4.6%  two weeks later
03/12/09… S&P500 +10.9% two weeks later
03/10/09… S&P500 +12.0% two weeks later
01/02/09… S&P500 -8.8% two weeks later (*)
10/13/08… S&P500 -15.4% two weeks later (*)
07/29/08… S&P500 +2.1% two weeks later
07/16/08… S&P500 +3.1% two weeks later
04/16/08… S&P500 +1.5% two weeks later
03/18/08… S&P500 +2.8% two weeks later
11/28/07… S&P500 +1.2% two weeks later
06/27/07… S&P500 +2.8% two weeks later
05/02/07… S&P500 +1.2% two weeks later
04/05/07… S&P500 +2.8% two weeks later
03/20/07… S&P500 +1.9% two weeks later
10/12/06… S&P500 +1.9% two weeks later
10/04/06… S&P500 +1.2% two weeks later
07/19/06… S&P500 +1.5% two weeks later
06/01/06… S&P500 -2.3% two weeks later (*)
04/18/06… S&P500 +0.4% two weeks later
01/03/06… S&P500 +0.7% two weeks later
11/02/05… S&P500 +1.4% two weeks later
05/18/05… S&P500 +1.6% two weeks later
02/04/05… S&P500 -0.1% two weeks later

In 24 out of the last 30 occurrences, or 80% of the time, the S&P was trading higher two weeks later, significantly better than the 57% at-any-time odds for a higher S&P ten trading days later in the same time frame. In only three cases was the S&P down 1%+ two weeks later, while it was up 1%+ twenty-one times.

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Comments, data and trading signals herein are for informational purposes only and are not recommendations to buy or sell. All information presented is believed to be accurate but is not guaranteed.