Last week there were perfect conditions for Hindenburg Omen indicator. Markets seems unstable at the moment, > 3% of stocks marking both new 52w highs and lows.
The Hindenburg Omen looks for a statistical deviation from the premise that under normal conditions, securities are either making new 52-week highs or 52-week lows. The abnormality would be if both were...
I follow a CFA from Charles Schwab, who uses this signal to establish negative or positive sentiment. To notice how it worked in the past, I have added the S&P500 trend line.
The idea is as follows:
When the upper Bollinger Band (with a 50 period and 1 standard deviation) on the $VIX turns higher, that is a bearish sign, and when it turns lower, the SPY tends...