Leaders Index 5-26 Hindenburg Omen

The markets had an up but not to inspiring day. The major averages were up all day and all but the Dow closed near their highs. Volume was mixed, up slightly on the Nasd and down slightly on the NYSE. The leaders had a better day, up 1.7% on higher but still below average volume. The leaders index broke above the 50 and 17dma's, which is a good sign, but we would have to see more strength to get excited. I have been keeping an eye out for Hindenburg Omen signs and we came extremely close today. If you use the 2.8% level we were 7 issues short on the new lows. If you use the original 2.5% level we had one today. It is a good idea to watch out for this indicator as it signals the end of a bull market, not an intermediate term correction. For more information on this rather obscure indicator just Google it. The major averages have come up to their 50dma's, so watch to see if they clear this hurdle. Jerry

hi Jerry,

Didn't the hindenburg omen pop up several times last year (I think once in the summer and once again during the winter months)? I could be wrong, but I remember the VIT group mentioning it. However, both times did not lead to a major correction. Perhaps with POMO drying up, this time around might be different. As always, would appreciate your insight.

Thanks!

Lulzasaur, there was a signal last summer but it was questionable as all the paramaters were not met. There were two signals in a row in November that gave a clear signal. It can be several months after a signal that the market finally tops. In 2007 the first signals occured in June I believe and the market didn't top until the end of Oct. and early Nov. so we will have to see how this one works. Again this one is only a maybe and you need two within 30 days to have a confirmed signal. We will have to wait and see. Jerry