The Hindenburg Omen

This technical signal forecasts a big downfall in the stock markets. It is named after the zeppelin destruction in 1937. Basically, it looks for more that 2.2 % of the total number of shares of new 52 week highs and new 52 week lows with some restrictions. It marks a turning point in the market. It has done a really good job so far.

Why are we talking about it now? Because this month we have seen a very close Hindenburg Omen. Just to be alert.