 What I want to talk about today is the SPX market internals. So the advantage with the SPX is it's an index and that means it's it's made up of component stocks and in the case of the S&P 500 we have 500 stocks that go into the S&P index itself. So there is already some internals available and one is the wall SPD which tells you the up minus down volume of all the stocks in the S&P. So any stock that's up that that volume is counted as up volume and any stock that's down it's counted as down volume and then you have advances minus declines the AD SPD. So all of these they try to give you a sense of the breadth of the market. So when I say breadth okay it's not just what is one stock doing what is one index doing what is the internals of that index. So which means in the case of the S&P 500 we're looking at 500 stocks then there's a third one called the ticks and the ticks is it's just an up tick minus down tick. So every millisecond in all these 500 stocks they are either ticking up or ticking down and so the ticks calculates what is the number of up ticks what is the number of down ticks and it gives you a continuous reading when the markets are open. So the ticks in that sense is a lowest denominator in the sense that it's totally raw data you know it's the probably the rawest is not a good way is not a right word but it is the rawest data coming from the market because it is computing things at real time on a tick by tick basis. So even in one second if you have a stock like Apple for example in one second it might be ticking several you know maybe even hundreds of times and so all of those are being calculated. So the ticks per se if you look at the chart and I can show that to you the ticks per se is not very helpful in general but then what you can do is do a cumulative ticks so which means for as soon as the market starts the up ticks and the down ticks are being calculated and then there is a cumulative total that is running as as long as the markets are open. Now this is what really becomes extremely helpful and gives you a perfect indication of the market breadth. Now some people may have attended this webinar about two or three weeks ago a couple of weeks ago I think and we did you know we did you know look at these cumulative ticks as well. Now one of the things and of course you know I've been looking at it also since then and one of the things that we have to think about the ticks are see the ticks start calculating at the beginning of the market so when the market opens and so you want to let the ticks go for some time and for some time I mean like half an hour one hour and because you need to let the market breadth start showing itself and so what we did in the earlier webinars we took a couple of trades at the beginning and that's actually the wrong thing to do you have to wait for some time so that the tick information starts developing and starts building and starts developing a pattern or a trend and that's when you want to get in so this is what we're going to look at today the ticks indicator and then what we'll also look at is something called a custom RSI so if you've heard of the RSI indicator or if you've seen it they generally tell you when a stock is overbought and oversold so generally consider to be a reversal when it goes into the overbought at the top you expect some sort of a reversal and the same thing at the bottom but this custom RSI has been customized to depict bullish and bearish zones so then it starts becoming persistent so what I mean is you'll see it on the chart that once it gets into the bullish zone you know it could remain there it could remain there and that tells you to remain in the trade now not all the time will it remain there I mean it all depends what the market does but when it remains in a zone when it's persistent that's when you want to stay in the trade and then the custom RSI works for any time frame day swing all on the term and it works on any chart currency commodity stocks so it's a very helpful indicator so finally I just want to leave you with some links here this is of course going to be recorded so you don't need to write this down but you know you can if you want to write it down that's fine but if you need more information there's a YouTube playlist for the custom RSI there's a YouTube playlist for the SPX ALBO itself and of course this is my email and I'll come back to this a little later and if you have any questions you can you know you can send me an email here all right so that's as far as the presentation is concerned what I want to do is first of all change this to a five minute chart right now we can go back and see you know on on these previous five days at least what exactly happened and so what I'm going to do is I'm going to go back here and go to each of these days now the ticks will only work when the markets are open so and you know the futures trade almost 24 hours but you're not going to get data when the markets are not open so here this is yesterday's price action and this is yesterday's tick action so now this is a five minute chart so I think once the market opens and it's gone into the first 30 minutes to one hour that's when you want to change the chart to a five minute because the five minute gives you much better perspective of what is going on with the internals and so if you looked at the market yesterday I think the futures were up a little bit about three four points but then the markets ended down you know 10 points and you can see that even though the markets tried to go up at the open it the ticks never really you know caught up you know in a whole lot of way even if you can see the biggest the highest tick here was positive 161 and so that itself will tell you that yes the market is trying to go up but the ticks are not responding and of course the customer only tells you the price action so really you want to look at the ticks to understand what's going on and then sure enough on the five minute chart once you see two or three red dots or two or three green dots developing that's when you're looking for a trade so you know if you give up the if you discount the first half an hour to one hour what you're seeing is somewhere here there's a you know a persistent trend developing and so you know if you took the trade let's say over here when the SMP when the ES was at 3014 I'm looking at the level on the right hand side somewhere here you know you can write this nicely and you can see the ticks are going to support your trade and you can see that you know at some point and the RSI also support RSI is telling you stay in this trade it's still going bearish when the RSI turns around that's when it's RSI is telling you only price action though so even though the ticks are going down RSI is saying hey there is some you know change happening with the price action right here and so you want to get ready to get out of your put trade at that point and then it's just it just chops around here and there it briefly goes into the bullish but the ticks are still negative here the ticks at this point are still three you know negative 392 and then another bearish move comes and then there is a persistent move of the of the I mean there's a persistent red dots coming in and the RSI goes back into the bearish zone and then from here at least until here you have a small trade there so each of these are five minutes so you know both of these trades would have lasted about half an hour each this one would have been very very profitable it would have been nice this one would have been okay not not that bad but what you want to do is wait for these opportunities and take just one or two trades during the day and that's you know that's that's the best way to take advantage of day trading at least on the S&P.