Question

Compute the Arms index for the​ S&P 500 over the following 3​ days:

Day	Number of Stocks Rising in Price	Number of Stocks Falling in Price	Volume for Stocks Rising in Price	Volume for Stocks Falling in Price
1	352	148	848 million shares	424 million shares
2	279	221	449 million shares	724 million shares
3	259	241	853 million shares	416 million shares

1) Which of the 3 days would be considered the most​ bullish? Explain why.

The TRIN for day 1 is 1.19​(Round to two decimal​ places.)

The TRIN for day 2 is 2.04​(Round to two decimal​ places.)

The TRIN for day 3 is 0.52 ​(Round to two decimal​ places.)

2)Which of the 3 days would be considered the most​ bullish? Explain why.  ​(Select the best choice​ below.)

A.Higher TRIN values are interpreted as being bad for the​ market, because even though more stocks rose than​ fell, the trading volume in the falling stocks was greater.

B.More stocks rose than fell on all three days. Hence the numerator is always greater than 1.0.

C.On day​ 2, the volume of declining issues exceeded the volume of increasing​ issues, resulting in a denominator that was less than 1.0.

D.All of the above statements are correct.

3) ​Therefore, which of the 3 days would be considered the most​ bullish?

Day 3

hi can you please check if my answer are correct and also i cannot understand part 2 .

Answer 1

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