Market Internals to watch Intraday

On an intra-day basis "Market Internals" can help us decide whether or not we should trade in one direction all day (trend day) or whether we should look for trend reversal at some point during the day.

Whatever decision we take can have a very dramatic impact on our trading account balance. Correctly anticipating a reversal when the market is going to reverse and correctly staying with the one-way trend when the market is not going to reverse is key to maximum profit.

The mistake of most traders is either not watching the "appropriate" "market Internals" or not watching it at all. The following will list the market internal readers that I find very reliable and the ones that I would watch all day long.

• 1. $TRIN (also called ARMS Index)
• 2. Advance-Decline Line (NYSE)
• 3. $TICK (NYSE)
• 4. $BKX (Banking Index)
• 5. Nasdaq (Nasdaq is a leading indicator)

I will outline the levels to watch in my next blog