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I’m about to share something that changed everything for me as a day trader. During a volatile session, I watched the S&P 500 (SPY) dump nearly 20 points in minutes — and the NYSE Tick index signaled the move before price reacted.
The ticks went sharply negative, and SPY followed like a shadow. That’s the kind of edge you get when you understand how to read market internals in real time.
Most traders wait for a big red candle before they decide what to do. By the time they act, the easy money is already gone. Internals reveal what’s happening beneath the surface the same way a doctor reads a patient’s vital signs. When they all flash red or yellow at once, you know something major is coming.
The NYSE Tick and How It Signals Market Momentum
The Tick measures stocks advancing versus declining from their last traded price. Negative ticks mean stocks are stepping down, positive ticks mean they are stepping up.
But the extremes matter most. A negative tick of 800 signals extreme selling, while a positive 800 signals extreme buying.
During that 20‑point drop, the ticks did not just drift lower — they plunged. When you see a sudden cluster of extreme negative ticks, you know selling pressure is accelerating before it shows up on the chart. The Nasdaq often reacts even more sharply, picking up speed as pressure builds across the market.
So for quick reference:
TICK: Extreme buying above +800, extreme selling below −800
TRIN: Above 2 indicates a bearish extreme
The TRIN measures volume flowing into advancing versus declining stocks. When it spikes above 2, selling pressure is not just present — it is dominant. This helps you separate noise from meaningful momentum.
ADD Line, TRIN and Confirming the Setup
The advance‑decline (ADD) line tracks the number of stocks advancing versus declining. When it’s sliding while TICK is negative and TRIN is elevated, you’re seeing a synchronized warning across the market.
My process is simple. First, the TICK shows pressure. Then the ADD line confirms broad participation. Finally, TRIN reveals whether the volume supports the move. When all three align, the probability is on your side. When only one flashes a signal, it is usually a trap.
Even strong signals are not always tradable. After a major move, liquidity can dry up fast, making the market nearly untradable. On days when the move happened early, I often treat any new setups as bonus opportunities rather than high‑quality trades. Sometimes the smartest play is stepping aside instead of forcing a trade into thin conditions.
Market internals do not just help you find trades — they show you when not to trade. That discipline separates consistent traders from reactive ones.
Order Flow:
This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.
When you look at these plays, always take the market maker move into consideration.
You can be right on the direction but still lose money if the stock doesn’t move enough. That’s where the market maker move comes in clutch.
With puts, they’re often downside hedges in case a stock tanks, especially around earnings. The further out of the money they are, the more likely they are to be hedges.
Also be sure and check when the company’s earnings date is because many of the plays we post here are centered around earnings!
If a stock is really expensive, consider a spread to lower the cost.
And finally, always remember the golden rule when it comes to buying calls: Buy dips, sell rips — and don’t chase!
If a stock’s moved a ton already today, maybe wait for a pullback.
There is inherent risk in trading. Trade at your own risk.
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
The team at Lance Ippolito Trading
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
Important Note: No one from the team at Lance Ippolito Trading, New Money Crew or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
