Friday 9 March 2007

Emini Daily Update: Trading Index TRIN Divergence

The Emini closed up 0.25 points at 1,417.75 on Friday. We had a Larry William's Oops open (today's open above yesterday's high) and the professionals took the opportunity to take profits. The Emini quickly sold off but strong buying came in at 1,410 later in the day.

Emini John Ehlers Hilbert Sine Wave Image

The chart above shows how John Ehler's Hilbert Sine Wave worked out after yesterday's article. The Sine Wave nailed the high of the day and is labeled "FirstPB" for First Pull Back. We'll see how far the Emini will fall towards the cyclical low and completion of the trend move - especially given the strength of the rally late on Friday that carried the Emini back up from 1,410 to 1,418.

Emini Trading Index TRIN Image

The second chart above shows the adjusted Trading Index (TRIN) indicator on daily Emini bars. This appears to be setting up a bearish divergence pattern over the past 4 days (red trend lines). The Emini is up and making higher highs, while the TRIN has lost steam and put in a lower high. Click the following link to find out more about how to trade using the Trading Index (TRIN).

Good luck Emini trading next week and look out for the Commitment of Traders update later today (interesting data released).

Emini trading articles filed under TRIN Indicator :