The ominous "Hindenburg Omen" was triggered last week, StockCharts.com chief market technician David Keller noted Monday.
.SPX YTD mountain S & P 500 "It has a track record of calling major market tops so when the Hindenburg Omen fires it's something that investors should take note of.
The Russell 2000 is up just 2.5% in 2024, while the S & P 500 has advanced 11%.
If anything, the technician regards the Hindenburg Omen more as an indicator of new market leadership than a harbinger of a downturn.
A loss of the consumer discretionary sector, which makes up roughly one-tenth of the S & P 500, could mean a deeper drawdown of 10% to 20% in the index.
Persons:
David Keller, JC O'Hara, Roth, O'Hara, Russell, He's
Organizations:
Street, Dow Jones