‘Hindenburg Omens’ & ‘Titanic Syndromes’

By Tyler Durden

Authored by Pater Tenebrarum via Acting-Man.com,

Bad Hair Days Are Back

We recently discussed the many divergences between major US indexes, which led us to expect that a downturn in the stock market was close (see The Calm Before the Storm for details). Here is an update of the comparison chart we showed at the time:

The divergences between various indexes seem to be resolving as expected.

The next chart shows analogous divergences between the S&P 500 Index and two major foreign stock markets:

US stocks have diverged from European and Japanese stocks as well.

Sometimes an increase in market volatility does not mean much – but when it happens at a time when the market is trading at extremely high valuations, money supply growth has been low for quite some time and leading economic indicators are weakening, it can be a major warning sign. There are also other reasons to suspect that the recent market upheaval is likely to be of more than just short term significance.

For one thing, there has been a cluster of “Hindenburg Omens” and “Titanic Syndromes” recently. Both are indicative of a growing lack of trend uniformity and weakening market …read more

Source:: Zero Hedge

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.