TRIN Arms Index Daily Chart Uber Lows Signal Uber Bullish Euphoria

The TRIN printed an uber low number yesterday, at the lows of the day at 0.28, which shows that the bullishness is off-the-charts.  The upside market euphoria is rampant with the boat fully loaded to the bull side, thus, you know what typically happens next. A TRIN under one shows that they bulls are favored, above one the bears are favored. Extremely low, or extremely high numbers identify market tops and bottoms, respectively.

The red circles show the two prior uber lows. In June, the uber low signaled a market top, within a day or so of the low print, that dropped the SPX 55 handles over five days. The low TRIN in late July marked another market top where the SPX fell 37 handles in four days. The gray circle on the bear side of the chart above one, as would be expected, identified a bottom in the markets, which resulted in a 60-handle up move over four days time.  What do you think will happen next? 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.