Is the Hindenburg Omen forecasting a Stock Market Crash?

Stock traders are talking up the Hindenburg Omen. Is the Hindenburg Omen forecasting a stock market crash?

The Hindenburg Omen and the Criteria.

Or view a video over on the Two-Way Street Blog on CNBC

Criteria

The traditional definition of a Hindenburg Omen has five criteria:

* That the daily number of NYSE new 52 Week Highs and the daily number of new 52 Week Lows must both be greater than 2.2 percent of total NYSE issues traded that day.
* That the smaller of these numbers is greater than 75. (this is not a rule but a function of the 2.2% of the total issues)
* That the NYSE 10 Week moving average is rising.
* That the McClellan Oscillator is negative on that same day.
* That new 52 Week Highs cannot be more than twice the new 52 Week Lows (however it is fine for new 52 Week Lows to be more than double new 52 Week Highs). This condition is absolutely mandatory.

These measures are calculated each evening using Wall Street Journal figures for consistency. The occurrence of all five criteria on one day is often referred to as an unconfirmed Hindenburg Omen. A confirmed Hindenburg Omen occurs if a second (or more) Hindenburg Omen signals occur during a 36-day period from the first signal.