Within The Next Forty Days A Stock Market Crash Will Occur And It Will Be Nasty. Financial Assets Will Be Particularly Vulnerable.
June 1st, 2013
A rare sighting in technical analysis could portend a crash.
According to Jonathan Krinsky, a technical analyst at Miller Tabak, the omen has appeared!
In a note that went out to clients just an hour ago, he wrote:
The Theory then goes like this:
Two such signals within a 36-day period is consider ed a Hindenburg Omen. The Hindenburg Omen portends a serious decline within the next 40 days . (note: the 36 day period is somewhat ambiguous, as we have seen some say it is a 30 day period, and some say it must be 30 calendar vs. 30 business days).
Let’s look at the first “observation” that occurred on April 15 th of this year.
1) NYSE New 52 Week Highs = 70 , New Lows = 77 . Both exceeded 2.2% of total issues that day.
2) The 10 Week (50 Day) Moving Average Was Rising
3) The McClellan Oscillator was negative
4) New 52 Week highs were NOT more than twice 52 week Lows
All 4 criteria were met.