TRIN Arms Index Daily Chart Uber Lows Uber Bullish Euphoria

The TRIN is moving along at a sub one number for five days in a row which is very odd behavior.  A TRIN under one says the bulls are in control; readings under 0.7 signal uber bullishness that typically needs to see a market sell off to relieve the out-of-hand bullish pressure. Numbers above one signal the bears in control with readings above 2 signaling uber bearishness that needs a market rally to relieve the bearish pressure.  Obviously, we are now in the over-the-top bullish scenario that needs to see a market pull back.

The only data that remotely comes close to this current five day odd behavior is back in March which shows a four-day event at uber low numbers.  This resolved with the 3/19/12 top and a 25 handle pull back for the SPX. Interestingly, this top occurred at almost identical levels as the SPX is at now. That TRIN behavior in March reflected a wild upside orgy party rally, just like the last six days, so that fractal is an important clue moving forward.  Projection is that the TRIN is going to print above one, probably tomorrow, as well as a few numbers over coming days above one, which means the markets will experience a sell off move which may be as much as a 25 handle three to four day pull back for the SPX, using the previous fractal as a guide. 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.