TRIN Arms Index Daily Chart

TRIN prints uber low 0.38 on the QE3 news. Draghi's bazooka a week ago printed a low 0.26.  Draghi's original statement about supporting the euro at all costs, that started this central banker circus the last couple months, occurred on 7/26/12 which resulted in a huge up market day and a TRIN of 0.26.  All the red circles are market tops, typically shorter duration tops, so that means on a daily basis, or perhaps even intraday basis over a few hours of time.  Thus, the markets need to pull back to burn off this uber bullish euphoria and that should occur today or Monday.  The pull back may only be a few hours or it may be two or three days. It is not unreasonable to look for a 15 to 40 handle pull back.

In general, for the TRIN, look for market rallies when the selling is uber ugly with TRIN printing above 1.5, and lok for market selloffs when the buying is over-the-top with TRIN printing under 0.60. 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.