Hindenburg and Titanic, OH MY!

McClellan Financial Publications

Tom McClellan

Article

1 Pages

McClellan Financial explains how the Hindenburg Omen and Titanic Syndrome use market breadth to identify periods when internal market conditions become unusually fragile. While both indicators have preceded major declines, they also generate false alarms, making them better viewed as warning signs than standalone market timing tools.

Key Takeaways

Warning Signals Matter: Using the original criteria, 4 Hindenburg Omen signals occurred between May 29 and June 4, 2013, highlighting unusually broad internal market divergence.
Strict Confirmation Rules: Titanic Syndrome requires new lows to exceed new highs, with 4 of 5 days meeting additional confirmation criteria before becoming a stronger warning.
Breadth Thresholds Evolved: The Hindenburg Omen threshold increased from 2.2% to 2.8% of advancing plus declining issues after decimalization changed NYSE trading behavior.
VIEW FULL REPORT

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

Market Outlooks
Midyear Outlook
Jul 2026
Market Outlooks
2026 Mid-Year Investment Perspectives
Jul 2026
Investing in America
America at 250: A View from Capital Markets
Jul 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top