Hindenburg omen was mentioned a few times last month and they have gone quiet after the SPX flew to historic highs.
I was lucky I did not pay much attention to it, keeping an eye on the Jaw of Death charts and we are lucky to see UST yields climbing back up, logically along with the history made in stocks.
It was sighted mid last month and has 30 days to run. The chart above is prepared with the NY Composite Index which includes a larger variety of companies, including ADRs of foreign names.
The McClellen Oscillator is now positive which means the omen is negated, with a few days left to run. Still, it is a rare sighting indeed, with only 6 omens surfacing since 2002, leaving us wondering if it is a harbinger of a correction coming.
I decided to drag out the old Jaws of Death which is suffering from a jaw lock in BoJ’s hands.
The 10Y yield is starting to shape up a little, closing the gap with the Dow.
Now, will the Dow close down as Hindenburg predicts ?