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Rules to watch for when trading with the "Tick Index"
 

In run away market the tick index readings will exceed +600 for rallies, and -900 for declines for extending periods of time. When the open and closing range exceeds 3 S&P points the trend is still intact even though tick readings have reached the upper limits of +600 for tops and -900 for bottoms. In other words, no turning point in the market is anticipated until the open and closing range on the S&P’s narrow to less than 3 S&P points.
 

Illustration for anticipating a turning point in the market