A technical sell signal for the Nasdaq has hit levels not seen since the tech bubble.
However, it should be taken in the context of a still supportive economic backdrop, with buoyant excess liquidity and low near-term recession risk.
The Hindenburg Omen compares the percentage of stocks in a stock index making new 52-week lows versus 52-week highs.
When both are rising above a certain threshold, and we are near a one-year high in the index, the signal activates.
For the Nasdaq, more omens have triggered so far this year than in any calendar year since the 2000 tech-driven top.
