‘Hindenberg Omen’ Meets ‘Titanic Syndrome’ For The First Time Since October 2007
by Tyler Durden
ZeroHedge.com
Nov 15, 2017
Two weeks ago we warned that a cluster of the infamous Hindenburg Omens was forming. Since then stocks have suffered their biggest drop in 3 months…
However, the Hindenberg Omen is not exactly flawless and has false-alerted a number of times in the last few years.
Which is why, John Hussman – of Hussman Funds – has adapted the signals and is now warning of a very significant convergence of the ‘Hindenberg Omen’ and the ‘Titanic Syndrome’…
I’ve noted over the years that substantial market declines are often preceded by a combination of internal dispersion, where the market simultaneously registers a relatively large number of new highs and new lows among individual stocks, and a leadership reversal, where the statistics shift from a majority of new highs to a majority of new lows within a small number of trading sessions.
– John P. Hussman, Ph.D., Market Internals Go Negative, July 30, 2007
Just a brief comment on market action. On Tuesday November 14, the number of NYSE stocks setting new 52-week lows surged above the number of stocks setting new highs, with both figures representing more than 3% of total issues traded.
This “leadership reversal” joins the deterioration in our own measures of market internals last week, as well as ongoing dispersion in market breadth and participation.
As noted in the chart below, this couples a “Hindenburg” with a “Titanic,” and is actually the first time since July 2007 that we’ve seen this particular combination of internal deterioration. Each of the red bars below was also associated with unfavorable market internals on our own measures.
The Rest…HERE
