Monday 24 March 2008

TRIN Indicator Warning

TRIN indicator bearish divergence warning signal. It was gratifying to see the Emini break 1,360 today, particularly given my bullish medium-term forecast posted on Friday. However, we didn't reach 1,365.50 and close the gap from 28 February before some profit taking set in.

We're coming into a Hilbert Sine Wave cyclical turning point (down) on the daily chart and all my oscillators are starting to get over-bought. The first oscillator to turn is usually the Better TRIN Oscillator and the first sign of weakness can be a bearish divergence warning signal like we got today (see the chart below).

Emini TRIN Indicator Image

TRIN Indicator (Emini daily)

Remember this isn't a forecast of a down day tomorrow, just to be prepared and watching for any topping out action. Good luck with your Emini trading.