Info!! Criterion Stock Marketplace Persuasion Infinitesimal Yesteryear Minute

Suppose nosotros could enquire all participants inwards the U.S. of America stock marketplace whether they are bullish, bearish, or neutral on the market's administration too become a fresh reading every minute?  That powerfulness last useful information, every bit it would demonstrate when bullish or bearish stance is turning; when it is becoming extreme; when it is staying bullish or bearish over time, etc.

When marketplace participants pay upwards to purchase a stock past times accepting the best offering toll ("lifting the offer"), they display urgency getting into their positions.  Similarly, when they sell a stock at the best bid toll ("hitting the bid"), they demonstrate their urgency getting out of positions.  If a player has no detail urgency, they volition larn out orders inwards the marketplace to make meliorate execution past times buying at bid prices too selling at offers.  

Urgency reveals stance on a moment-to-moment basis.  

Above nosotros come across a nautical chart for yesterday's toll activity inwards SPY (blue line) too a mensurate of bid/offer sentiment.  (Raw information from e-Signal).  This mensurate looks at where each merchandise inwards each stock occurs relative to the best bid/best offering at that instant too tells us how many stocks inwards the NYSE universe are executing at offering prices minus those executing at bids.  Savvy readers volition recognize that this is like to the logic behind the Market Delta mensurate too is like (but non identical) to the NYSE TICK mensurate I've covered inwards the past.

Notice the dramatic shift inwards stance virtually the day's high toll too how after periods of bullish stance occurred at successively lower toll levels.  In short, the bulls were lifting offers, only their stance was non able to elevator toll higher.  That's a overnice country for a weak market.

Further Reading:  Upticks vs. Downticks for All Stocks Across All Exchanges
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