AI
Wednesday, July 06, 2005 12:21:10 AM
After The Bell: 07/05/2005 TRIN INDEX
TRIN Index study is the study of the Volume, and volume is probably the most important study of the internal strength of the market.
It’s very fascinating to see TRIN (ARMS) Index dropped from Thursday’s high of 1.92 to today’s 0.81. The last time this type of sharp decline occurred was in late April and early May followed by a one-month rally that took the big board (NYSE) index up by about 6%.
The probability of that happening again seems quite high except the increase may not be as much this time.
My own calculation based on today’s issues and volume gave me the TRIN index listed at the bottom of this chart.
NYSE and NASDAQ both have a very “healthy” TRIN reading at 0.85. This shows that the advancing issues were strongly supported by the volume today. The problems are with both AMEX and OTC Indices. Their respective TRIN Index of 0.27 and 0.29 indicate overbought condition, and they should continue to go through some corrections. Of course, AMEX and OTC are homes to many gold/silver mining companies. This is one of the sectors that may continue to go through a correction period.
TRIN Index study is the study of the Volume, and volume is probably the most important study of the internal strength of the market.
It’s very fascinating to see TRIN (ARMS) Index dropped from Thursday’s high of 1.92 to today’s 0.81. The last time this type of sharp decline occurred was in late April and early May followed by a one-month rally that took the big board (NYSE) index up by about 6%.
The probability of that happening again seems quite high except the increase may not be as much this time.
My own calculation based on today’s issues and volume gave me the TRIN index listed at the bottom of this chart.
NYSE and NASDAQ both have a very “healthy” TRIN reading at 0.85. This shows that the advancing issues were strongly supported by the volume today. The problems are with both AMEX and OTC Indices. Their respective TRIN Index of 0.27 and 0.29 indicate overbought condition, and they should continue to go through some corrections. Of course, AMEX and OTC are homes to many gold/silver mining companies. This is one of the sectors that may continue to go through a correction period.
David
#board-3693
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