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?
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 Sine Wave 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.