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Hindenberg Omen - What is it and what does it mean for the stock market?

Martin George, Biniz Author, BA in Communications, JD Juris Doctorate

2025-11-01

The Hindenberg Omen is a signal that flashes on the stock market which means that it is headed downward, much like the horrible Hindenberg that crashed so long ago, which was a huge blimp. So, what does it really mean? It is basically saying that too many stocks are hitting all time highs, while other stocks are hitting all time lows. They call this divergence and it likely spells trouble for the whole stock market. Stocks like harmony, and they like it when they all go up together. There are three signals, however, which are particular to this foreboding sounding omen, and they are: 1. The S&P 500 remains above its 50-day moving average. 2. More than 2.8% of NYSE stocks hit 52-week highs and lows simultaneously. 3. The McClellan Oscillator turned negative, meaning declining stocks are gaining momentum over advancing ones. --- There it is and all of these have flashed, which could spell negative results in the coming weeks. We shall see. Hopefully, it will not be too bad.

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