A sign of exhaustion in markets can be when markets are rising despite not all stocks acting well. When we redefine what is known in the technical analysis world as the Hindenburg Omen by looking at days when there are both at least 1.5% of stocks on the Nasdaq exchange making new highs and new lows, and look at those days cumulatively, we can observe this cumulative Hindenburg Omen signal as a very clear early warning sign of major market tops going back almost 50 years. What’s this indicator suggesting right now? Nothing good.
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