TRIN Arms Index Daily Charts

The TRIN prints three days of numbers above 1.50 so a stabilization and near-term bottom would be anticipated. The 1.4-1.8 area reflects steady-eddy selling. Above 2 and higher indicates fear and panic where a near-term bottom typically occurs so the selling is orderly and bear-friendly. The red circle shows the uber low sub 0.40 print that indicates bullish euphoria and sure enough created a near-term top. The TRIN then printed at elevated levels above 1.80 and above 2.20 so a market bottom occurred in late September with markets attempting to stabilize. This leads to an up move in stocks into the bullish euphoria at 0.4-ish five days ago which identified another top.

Three days ago an intraday bottom was printed with the spike to 2.2 and now the TRIN stumbles along remaining on the sell side last Thursday and Friday (above one). The green lines and circles on the solid line daily chart show significant recent bottoms occurring at a TRIN above 1.7. Currently, the TRIN is not quite there. Therefore, perhaps stocks recover to begin the week, and the S&P futures have greatly rebounded this morning from -10 overnight to +2, honoring the near-term elevated TRIN levels, however, more market weakness may occur in the days ahead before a more firm bottom is placed with the solid line chart printing above 1.7. 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.