TRIN Arms Index Daily Chart Market Direction Tool

The TRIN chart shows how to use this tool for predicting market direction. Uber market bullishness is shown by low numbers, in the 0.6's or lower, that identifies a near-term market top.  The 1.0 level is the bull-bear neutral line.  Uber market bearishness is shown by high numbers, over 2.50, that identifies a near-term market bottom.

The last three circles show the market top identified by the low 0.25-ish TRIN. The markets sold off this week which resulted in a TRIN above 3. This begs for a market recovery bounce, which occurred over the last day and results in a low 0.66 number yesterday.  The last red circle hints that the bullishness was too out of hand yesterday, a low print under 0.5 occurs intraday, so a near-term market sell off is desired by the TRIN. If market bearish, you want to see a steady-eddy TRIN of from 1.0 to 1.5 day after day and the markets will steadily drift lower.  If bullish, you want to see a steady-eddy TRIN of 0.8 to 1.0 day after day and the markets will steadily drift higher. 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.