In a Seeking Alpha post on March 19, Great Trades described how the Tick 10 day exponential moving average was, of late, serving to warn of market pullbacks:

The below chart of the Tick 10-day EMA readings shows that extremely high positive readings have previously preceded sharp selloffs:

The current level of the Tick 10-day EMA is extremely high, increasing the likelihood of a strong pullback very soon.

We have tried to update this chart through today’s (March 24) trading, below.

tick-as-of-mar242

As can be seen, the salient feature of the updated chart is that the Tick 10-day EMA is still very high – indicating a possible retreat from the recent 7% gain.  However, technicals like these are just that – technicals. With the government likely involved in a variety of manipulative actions, some overt, some clandestine, technicals can break down even more than normal…

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