Monday, September 28, 2015

TICK Tick and TRIN Arms Index Daily Charts

The TICK and TRIN, critical indicators for day traders, hit uber bearish levels today. The baby is thrown out with the bathwater the bathtub, the sink and everything else. Traders are wringing their hands in fear and worry one soul screaming that 'the end is near'. The TICK machine is registering -1000 hits verifying uber bearishness exactly when the stock market bounces. The lows of the day are occurring now with the uber low -1200 TICK (you do not see this often).

Ditto the TRIN Arms Index up to 2.7. This reflects uber negativity with stocks. All hope is lost. Traders are yelling at each other to sell everything no matter what. You know what happens when the sentiment is this extreme with the TICK and TRIN (think from a contrarian perspective); a relief recovery rally in stock prices would be expected. The uber high TRIN should lead to a higher stock market tomorrow that can dissipate some of the negative energy. 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.

Note Added 3:03 PM EST:  The bears are taking no prisoners with stocks at the lows. The SPX is down 48 points, -2.5%, to 1884. The LOD is 1880 at 2:21 PM EST. The TRIN spikes to another 2.75 print and is now at 2.32. The TICK prints another uber low -1200 at 2:18 PM which identified the low occurring in stocks. A -1000 print occurs at 2:53 PM. VIX is at 27.71 under the HOD at 28.15 at 2:21 PM which also marked the inflection point for stocks to recover for a few minutes. Everybody and his bro is saying the 1867 low will be tested for the SPX which comically means it bounces now or way lower. Equities will likely bounce tomorrow. 

Note Added 3:10 PM EST: The SPX drops 51 points, -2.6%, to 1880 now at comparable levels to late August. The Dow is down over 3 hundo. The SPX 2-hour chart shows the RSI and MACD line slipping slightly (see previous chart) but over the one month period the indicators are positively diverged so the bottom is likely in 2 or 3 candlesticks which is about 4 to 6 hours of time which would be tomorrow. The SPX is down below the lower standard deviation band so it will need to revert higher. Perhjaps Mr Market is sucking everyone in right now since the pundits are touting 1867 and lower, some say 1850 is on tap, only to then pull the rug out from under the bears. The uber high TRIN will need a rally move in stocks to relieve the negative energy.

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