Trading RM, LLC.

College football season is just about underway, so I felt like updating the "huddle pic." We managed to break thru and close above 1000 in the S&P. A close above a psychological level is usually bullish. Look at a daily chart for S&P since July 13th! This is why as daytraders', we never say it can not possibly go and higher because it can and will.

Let's take a look at the internal structure of the market on the open. I have posted a 5 minute chart of the NYSE tick. On the open, the thick blue line (5 period moving average) is sloping upwards at a 45 degree angle. This is very rare. This line was foreshadowing the day. It kept ticking upwards from the get-go. Now, look at the absolute tick values. NOTHING below -500 basically all day. At 930 CST we had only one tick below -500. This is bullish.

When you combine the 5 period moving average and look at the absolute values, you can see why this is a powerful tool.