4 Day Advances Declines Volume advancing m Volume declining

4 Day Advances Declines Volume advancing (m) Volume declining (m) Yield on top-rated corporate bonds Yield on intermediate-grade corporate bonds 870 760 960 840 880 990 790 910 580 620 480 510 670 580 720 520 6.8% 6.7% 6.7% 6.6% 7.4% 7.4% 7.5% 7.6% 26) 26) From day 1 to day 4, the TRIN hasand is A) increased; bearish C) decreased; bearish B) decreased; bullish D) increased; bullish

Solution

TRIN ratio:

Day 1 TRIN= (870/880)/(580/670)=1.14

Day 4 TRIN=(840/910)/(510/520)=0.94

Since TRIN has fallen it is indicator of a bullish trend
Hence option B is correct