and now, the Hindenburg Omen...

We have a "Cardinal Climax" coming, we've had a "Death Cross" of the 50 and 200 day moving averages, we've had a "Dow Theory Trend Change Confirmation" according to Richard Russell, and now, from Zero Hedge...the Hidenburg Omen...is it time to look out below?

The Hindenburg Omen Has Arrived

Submitted by Tyler Durden on 08/12/2010 21:35 -0500

• Dick Fuld
 
• Market Crash
 
• McClellan Oscillator
 
• New York Stock Exchange
 
• Technical Analysis
 

Easily the most feared technical pattern in all of chartism (for the bullishly inclined) is the dreaded Hindenburg Omen. Those who know what it is, tend to have an atavistic reaction to its mere mention. Those who do not, can catch up on its implications courtesy of Wikipedia, but in a nutshell: "The Hindenburg Omen is a technical analysis that attempts to predict a forthcoming stock market crash. It is named after the Hindenburg disaster of May 6th 1937, during which the German zeppelin was destroyed in a sudden conflagration." Granted, the Hindenburg Omen is not a guarantee of a crash, and the five criteria that must be met for a Hindenburg trigger typically need to reoccur within 36 days for reconfirmation. Yet the statistics are startling: "Looking back at historical data, the probability of a move greater than 5% to the downside after a confirmed Hindenburg Omen was 77%, and usually takes place within the next forty-days." The last Hindenburg Omen occurred during the lows of 2009. Today, we just had another (unconfirmed) Hindenburg Omen. It is time to batten down the hatches - something big is coming.

» 

• 169 comments
 
• Read more