Wednesday 17 January 2007

Another TRIN Exhaustion Signal

The Emini closed down 0.25 points at 1,438.50 on Wednesday. Another exhaustion signal with Trading Index (TRIN) divergence - negative adjusted TRIN but close greater than open. See the chart below. Was today a trap up move?

Emini Trading Index TRIN Divergence Image White dot = Bearish TRIN Divergence; Red dot = Bullish TRIN Divergence

Trend and exhaustion summary

Summary of current trend oscillators - bearish:

Trading Index (TRIN) oscillator turned down
Open Close oscillator (Secret #2) oscillator turned down
Hilbert Sinewave oscillator overbought at +97 and about to cross
Smart Money oscillator overbought at +54 but not turned yet

Summary of current exhaustion indicators - bearish:

Trading Index (TRIN) divergence today (see chart above)
No Demand (low volume) pattern yesterday
High Volume Churn pattern yesterday
NASDAQ vs Dow divergence yesterday and today

The only fly in the ointment was the buying at the end of today. Could see some follow through tomorrow morning but I'm waiting for a high volume break below support at 1,435.

Emini trading articles filed under TRIN Indicator :