Trouble is brewing underneath the stock market as last week saw the 3rd largest cluster of Hindenburg and Titanic warnings since 2009.
Every day last week triggered a Hindenburg or Titanic technical warning signal. Similar clusters preceded consistent weakness across stocks, good for volatility. — Jason Goepfert
Hindenburg Omen – periods of weakening breadth during rising markets, with many 52-week highs and lows
Titanic Syndrome – a recent 52-week high in stocks followed by a day with more stocks at 52-week lows than highs
Hindenburgs & Titanics: Here is a portion of today’s note from Jason Goepfert at SentimenTrader: Don’t laugh. That seems to the be necessary introduction every time we take a look at the technical warning signs unfortunately called the Hindenburg Omen and Titanic Syndrome. Driven by hyped-up marketing names and scorn by sanctimonious (and hypocritical) fundamental analysts, the signals tend to generate a lot of attention when they fail…
And like everything else, they do fail. Just not as often as most (including favored fundamental indicators). This is a worry now because last week, the NYSE generated either a Hindenburg or Titanic warning sign. Every single day.
The exchange generated a total of 6 combined warning signs for the week. That’s tied for the 3rd-heaviest cluster of warnings since stocks bottomed in 2009.
Last week triggered the 3rd- most warning signs since stocks bottomed in 2009
— mcm-ct.com (@mcm_ct) September 10, 2018