Follow the Money and 'Extremes' in Equities

The Arms Index or Trin, (AN x DN)*(DV/AV), measures the force behind the movement into advancing and declining shares. Extreme movement into declining shares, highlighted by the red painted sticks, tends to foreshadow trading bottoms.

NYSE Internals:


Long and intermediate term bottoms tend to form when extreme movements are supported by leveraged inflows. This is illustrated by the Equity Diffusion index.

S&P 500 and the Commercial Traders COT Futures and Options Equity Diffusion Index (DI):