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One technique of determining market sentiment is through use of the S&P
premium numbers referred to each day by various sources. During the
trading day the PREM appears to wander randomly, but rationality does
appear when PREM is viewed in context with the three related numbers
plotted as horizontal lines on a realtime chart. On bearish days like
10/15 the PREM will spend most of its time between Fair Value and below the
Sell Programs lines. On very bullish days it will oscillate between Fair
Value and above the Buy Programs lines. On indeterminate days it will
spend most of its time in the region bounded by the Buy Programs and Sell
Programs. The overall market health can be determined by comparing the
instantaneous levels and trends of the TICK, TRIN and Price.
BobR
http://www.oextrader.com/momentum.com
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