The 10-day Trin has flashed the fist overbought warning signal of the year. When the 10 day simple average of the NYSE Arms index (TRIN) goes below 0.85 the market has become sufficiently overbought for a change in trend. Below is a chart of the SP500 that has a sub chart showing the 10-day Trin. Note in the chart how the high extreme readings of the 10-day average have preceded important upside reversals for the SPX. This indicator works the same way at extreme low readings only in reverse where the extreme low reading precedes a downside reversal in the SPX. For the first time in months the SPX is setup for a reversal: