Harness Deep Market Internals on the SPX

Trading the SPX Options has several advantages.

  • The SPX is a snapshot of activity of all 500 of its component stocks
  • SPX Options have several expiries in a week, so there’s a lot of flexibility
  • SPX Options are Cash settled, so no worries about Stock assignment
  • The SPX Index has a Deep set of Market data for analyzing its Internals
  • Market Internals define the “Breadth” – a wholistic view of strengths and weaknesses
  • Market Internals also define the balance of power between Buyers and Sellers

Market Internals Indicators

There are several Market Internal indicators available on many platforms. The $VOLSPD for example, provides the difference in Volume between stocks that are Up and Stocks that are down.

The Advance Decline Ratio tells us how many stocks in the S&P 500 are Advancing and how many are Declining, the total coming to 500.

The $TIKSP tells us how many Stocks are Ticking Up versus the Stocks ticking down.

Taking things one step further

While these are very good Internals indicators, if we can find a way to go one level lower and use Algorithmic power to make more sense and more meaning from Market Internals, it can give a serious EDGE to every SPX Options trader. The Webinar recording below is one such Deep-Mining indicator that can provide a significant insight into the state of Market Internals, resulting in superior trades and profits. This indicator is specifically useful for trading the SPX Options Intraday with some powerful results.

For feedback or questions, please email at info@optiontiger.com

Hari Swaminathan, OptionTiger.com

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