via Stockcharts.com - Hindenberg Omen Triggered

On April 15 the gold price sell-off grabbed everyone's attention, because of the extreme nature of the move. On that day another thing happened; a Hindenberg Omen was triggered.

We have had reports of a Hindenberg Omen around the web, but to be sure it would certainly show up on the original posting from 'Don't Ignore This Chart' on stockcharts.com

Stockcharts.com

http://scharts.co/13DMm68

In terms of what this might set off in the market would be as follows. The major stock indeces sell off in a large correction. This would cause greater demand on the three-month treasury bill in the U.S. - Rates have been declining incrementally on the treasury bill for weeks on end. Very likely this will result in negative nominal rates, since rates are barely above zero already.

A further problem is that the bond market is also selling off. A considerable difference from previous corrections is that bond markets selling off concomittantly, which can happen along with the stock markets, will make it a major correction.

Normally you would see money come out of the market and go into the bond market, and vice-versa, which has gone back and forth now for an extended period of time.

As you can see during a major stock market correction in 1987, bond markets led the sell-off a few months before stock markets declined:

http://scharts.co/18qSIek

-F6