The Emini closed up 4.00 points at 1,424.50 on Wednesday. Trading Index (TRIN) pop today – but is that all the Emini could manage? We didn't even break yesterday's high. Maybe that's being harsh – the Emini rallied almost non-stop from open to close on above average range and volume. Check out the adjusted Trading Index chart below.
Spike on TRIN Indicator
The adjusted Trading Index (TRIN) reading was +137 and confirmed today's buying. However, the Emini had to work hard all day from an open that was 5.25 points below yesterday's close to close at the day's highs. We're now stuck in a range between 1,412 on the low side and 1,425 on the high side.
I expect we'll grind higher tomorrow but we did end the day with a lot of churning volume. If we slide from tomorrow's open this was profit taking at the close; if we continue to advance this was professionals steadily absorbing the selling volume.
Expecting holiday strength
Apple did continue it's advance today and the NASDAQ and Semiconductors are performing more strongly. However, it did seem like hard work. The Emini typically rallies into holidays and we have the Martin Luther King long weekend coming up and no day session trading on Monday.
If we continue slowly higher over the next couple of days, at some point we may spark a short covering rally. Short stops could be sitting around 1,432 and this would give the professionals an opportunity to cascade prices higher, take profits and reverse positions. We’ll have to wait and see.