TRIN Arms Index Daily Chart

The TRIN drops to an uber low 0.32 this morning indicating off-the-charts bullishness. The low print is shown on a candlestick chart but the line chart is used above to eliminate a lot of the noise. The red circles identify market tops when the bulls are running without fear and traders are tripping over each other to buy any stock with a heartbeat, like today. The green circles are market bottoms where a whiff of panic and unease enters markets which creates the conditions for a rally.

The thick blue line at 1.00 is the neutral line for the Arms Index. If the TRIN is 1.00 to say 1.70, this represents steady-eddy market selling without any panic. This type of selling can continue for a while. When the TRIN moves above 2, 3, 4, and higher, traders are jumping out of windows as the markets sell off--the exact time to buy. If the TRIN is under one and in between 0.80-1.00 this represents steady-eddy buying in the stock market. Under 0.70 shows a buying frenzy in place where the bullishness is getting completely out of hand identifying a market top. Under 0.50 is identifying a quickly-developing market top simply because everyone is long and there are no sellers remaining.

TRIN is 1.03 right now recovering from the uber bullish 0.32 this morning. Call it neutral. So, despite the stock market running higher with the Dow just printing new all-time highs, the TRIN is neutral to the action now not favoring the bulls or bears today, after the uber bullish euphoria peaked about an hour ago. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.