TRIN Arms Index Daily Chart

The neutral bull-bear line is 1.00. For day-trading, if bullish you want to see numbers under 1.00, if bearish you want to see numbers over 1.00. The 0.80-1.00 represents steady-eddy buying while the 1.00-1.60-ish represents steady-eddy selling. Once the TRIN moves above 1.60 and higher, sometimes printing a 2, 3, 4, even higher number, that signals overdone negativity and the markets typically need to rally a few hours or more to relieve the bearish pressure.  Conversely, when the TRIN starts to print under 0.80 and lower, especially under 0.60, this signals over the top bullishness that needs to see some market selling to relieve the bullish pressure.

Note that the single uber bearish reading occurred a month ago, after the rally had started, identifying the last attractive low entry point for the bull rally. The TRIN has been spending lots of time on the bull side of the boat. The chart shows how the bulls are favored and the sentiment is on the bull side. Many uber bullish signals have printed over the last month and each time, the red circles, the markets have pulled back for a few hours or day or two. Thus, what do you think will happen as a result of the 0.48 print yesterday? 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.