The founder of the Hindenburg Omen, James Miekka, says his model is showing that there could be a Wall Street Crash in September 2010. Ever since 1987 the indicator has been present during a stock market crash. Don’t freak out yet, because it doesn’t always ring true every time.
Here are the things that have to are required for the Omen:
1. 2.2 percent or higher of companies on the New York Stock Exchange had Highs
2. 2.2 percent or higher of companies on the New York Stock Exchange had Lows
3. The Moving Average of the New York Stock Exchange must be rising
4. A negative McClellan Oscillator at the same time
5. The new yearly highs can’t be twice the amount of new yearly lows.
We will see what happens next. I probably should have wrote this post yesterday on Friday the 13th.
