If the Nasdaq Rallies, Don't Trust It

I noticed something interesting over the last week of trading. A week ago Friday (June 9) Nasdaq, and technology specifically, had its first major plunge of the year. Well, I suppose it was the second plunge if we count that May 17 plunge, even though that one lasted exactly one day.

As of Thursday's close last week, the TRIN for Nasdaq had been over 1.0 for five straight days. Please consider that this hasn't happened in 18 months; not since January 2016 has the TRIN gone more than three or five days with a reading over 1.0. As a reminder, the TRIN, or Trading Index, is a relationship between the advance/decline line and up and down volume, so it is a measurement of what underlying stocks are doing. Typically, a high TRIN means there has been selling underneath....478 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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