If you're trading index futures (ES, NQ, YM, RTY) without monitoring market internals, you're flying blind. The index price tells you what happened. Internals tell you why — and whether it's likely to continue.
What Are Market Internals?
Market internals (also called breadth indicators) measure the underlying participation of individual stocks within an index. They answer a crucial question: is the index move being driven by broad participation, or just a handful of large-cap names?
A strong rally confirmed by internals is more likely to continue. A rally with deteriorating internals is a warning sign.
TICK: Uptick vs. Downtick
The TICK measures the net number of NYSE stocks trading on an uptick versus a downtick at any given moment. It's the most widely followed internal indicator.
- Positive TICK (above +500) — Broad buying pressure. Most stocks are ticking up.
- Negative TICK (below -500) — Broad selling pressure. Most stocks are ticking down.
- Extreme readings (+1000 or -1000) — Signal exhaustion. Often mark short-term turning points.
HEXGO's algorithms monitor TICK across multiple indices (TICKSP for S&P 500, TICKNQ for NASDAQ 100, TICKINDU for Dow) to build a comprehensive picture of market-wide momentum.
ADD: Advance/Decline
The ADD (Advance/Decline) indicator counts the net number of stocks advancing versus declining. While TICK is a snapshot (this moment), ADD is cumulative throughout the day.
- Rising ADD — More stocks are going up than down. Bullish breadth.
- Falling ADD — More stocks declining. Bearish breadth.
- Divergence — Index rising but ADD falling = warning. The rally lacks participation.
VOLD: Volume Delta
VOLD measures the net volume flowing into advancing stocks versus declining stocks. This is where you see institutional money flow. Price can lie — volume doesn't.
- Positive VOLD — More volume in advancing stocks. Institutions are buying.
- Negative VOLD — More volume in declining stocks. Institutions are selling.
When TICK, ADD, and VOLD all align in the same direction, you have a high-confidence signal. This multi-confirmation approach is the foundation of HEXGO's trading logic.
Putting It Together
Professional futures traders don't trade price alone. They use internals as a filter — a way to separate high-probability setups from noise, especially during the best times to trade futures. When the ES is rallying and all three internals confirm the move, the odds are stacked in your favor. When internals diverge from price, it's time to be cautious.
This is exactly how HEXGO's algorithms work: they require confirmation from multiple internal indicators across multiple indices before entering a trade. No confirmation, no trade.
