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:
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.