the arb index is a short term indicator of the market’s
general direction for the next 3 to 5 days.

it is an oscillator that measures overbought and underbought
conditions and normalizes them for volume and market direction.

the arb index has readings from 0 to 10. readings above
8 indicate an extremely over sold condition. readings below
3 indicate a major over bought condition and a general stock
decline is imminent.

readings below 3 and above 8 have shown a +95%
probability of a reversal.