Well, our first Hindenburg Omen signal has now been confirmed by a second signal as of Friday’s close. Since 1985, there has not been a market crash that wasn’t first preceded by a confirmed Hindenburg Omen. The probability of a correction of 5% over the next 4 months is about 77%. The probability of a full blown market crash is now about 30% over the next 4 months. The odds of the market actually rising during this period is about 8%.
Again, proceed with caution. Protect those assets that are geared to make money only when the stock market rises. The Omen tells us the market is unhealthy right now. The market will now tell us how healthy our economy is over the next few months. It should prove interesting.
When we also look at the markets with the benefit of the MTPredictor Elliott Wave and Fibonacci trading software for stocks, commodities, futures and forex, we also see some interesting patterns that have formed that also corroborate the weakness the Omen has alerted us to. Check out this weeks video for more details.
To Your Trading Success,
JM
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