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From www.technicalindicatorindex.com

Nothing like a fresh Hindenburg Omen to bah-humbug Christmas. An unconfirmed Hindenburg Omen was generated on Wednesday, December 21st. By "unconfirmed," we mean that there needs to be at least one more signal over the next 36 days to generate a "confirmed" Hindenburg Omen where all the probability data we present in our Guest Articles section past performance article would apply. What is a Hindenburg Omen? It is a potential stock market crash signal based upon historic data going back to 1985. We will cover it in detail in this weekend's report. It occurs when both NYSE New 52 week Highs and Lows are greater than 2.2 percent of total NYSE issues traded that day, with concurrent conditions where the McClellan Oscillator is negative, and the NYSE 10 week moving average is rising. Further, New 52 week Highs cannot be more than double New Lows. Those conditions all occurred today. New highs came in at 97, with new lows at 91. The common number is 91 which came in at 2.6 percent of the 3,478 total issues traded on the NYSE December 21st. The McClellan Oscillator was negative 17.57, and the NYSE 10 week moving average was rising.

There were three other incidences when we saw confirmed (a cluster of two or more) Hindenburg Omen signals in the month of December during the past 21 years. In 1991 it led to a small 3.5 percent decline within 7 days. In 1997 it led to a decent 5.8 percent decline within 32 days, and in 1998 it failed (one of only two that failed over the past 21 years). However, if these develop into a cluster into January, we know that a Hindenburg Omen in January 2000 marked the all-time top in the Dow Industrials and led to a 16.4 percent crash over the next 44 days. Regardless, it is not good to be getting one of these signals now, but makes perfect sense as we have been calling for a major top between late December 2005 to January 2006. Remember, these signals are rare -- only 23 confirmed have occurred over the past 21 years. We also know from the past two signals that the Fed loves to flood markets with liquidity when these signals show up, presumably to provide fuel for PPT intervention. We will watch the M-3 numbers carefully to see if that occurs again