TRIN Arms Index Daily Chart

The TRIN and TICK are important charts if day trading or watching markets intraday or day to day. The TRIN is neutral at 1.00 neither favoring bulls or bears. If the TRIN drops under one, that means the bulls rule the roost that day. If the TRIN moves above one, the bears rule the roost that day. A TRIN at 1.00-2.00 is steady-eddy type selling that can motor along a few days. When the TRIN moves above 2, a market bottom is at hand since the bearish selling is too out of hand. The three important bottoms this year, February, April and June are easily identifiable by the high Arms Index.  The green circles show market bottoms and the red circles show market tops.

TRIN is an intraday and day to day indicator so all the various tops and bottoms are playing out in this intraday or few-day periods. The print last Thursday at the uber low 0.50 screams for markets to pull back and sell off to relieve the uber bullish euphoria. Traders are tripping over themselves to buy stocks on the long side, all in drunken stupors after consuming copious amounts of the Fed Kool-Aid. Market tops occur when the TRIN drops under 0.75. Note how the TRIN closed on Friday exactly at 1.00, dead neutral, deciding to take the weekend to think about the next direction. Projection is for some market selling to occur to relieve the uber bullishness evidenced by the 0.50 number. 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.