Bingo. We got the pop out of Congestion that was expected from Friday's Volume Indicator post.
Break Out of Trend Line Congestion Zone (Emini 45 min)
The Trend Line chart above updates Friday's chart and shows how large range moves develop out of trend line Congestion Zones. Getting the direction right is the trick – and in this case the decline in selling volume was the key.
TRIN Indicator and TRIN Systems (Emini daily)
Last chart is just a "hats off" to the TRIN Indicator. Once again the TRIN Indicator leads at a key market turning point – beating the Put Call Ratio, Smart Money, VIX and any other measure of market internal strength.
The first warning that the down move was losing momentum was a Bullish Divergence signal last Tuesday (red dot on the Better TRIN). We got the TRIN Oscillator turn on Thursday. Then another Bullish Divergence signal on Friday.
A true leading indicator – thank you Richard Arms (developer of the TRIN Indicator).
Good luck with your Emini trading.
