Using the end-of-day data from today (June 19th 2013) we can see yet another Hindenburg Omen has signaled:
That makes 3 signals in the space of a couple of weeks and constitutes a cluster of Omens which is what we look for as a sign that the market is about to correct.
For more information on the Hindenburg Omen please take a look at the following resources:
Ian Woodward video on Hindenburg Omen
Investopedia Article on Hindenburg Omen
Answers.com article on Hindenburg Omen
Safehaven.com article on Hindenburg Omen
Robert McHugh Ph.D 2007 Report
Here’s an extract from the Robert McHugh report listed above:
“The Hindenburg Omen is the alignment of several technical factors that measure the underlying condition of the stock market such that the probability of a stock market crash is higher than normal, and the probability of a severe decline is quite high“. – Robert McHugh, Ph.D 2007 Report.
Now, that is not to say that we are definitely in for a market correction but it is a warning sign to sit-up and take notice of because there has never been a signification market correction or crash without being preceeded by a cluster of Hindenburg Omens.