Compute the Arms index or TRIN over the following three days (refer to table at the bottom):

1. Which of the three days would be considered the most bullish? Explain why.

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

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

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

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

A. On day 2, the volume of increasing issues exceeded the volume of decreasing issues.

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

C. 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.

D. All of the above statements are correct.

Therefore, which of the 3 days would be considered the most bullish? . (Select from the drop-down menus.)

Data Table:

Day # of Stocks Rising in Price # of Stocks Falling in Price Volume for Stocks Rising Volume for Stocks Falling in Price 1 326 160 813 million shares 422 million shares 2 288 233 445 million shares 720 million shares 3 270 219 885 million shares 615 million shares