Short-term warning signs to remain aware of

Key points:

• The major indexes remain in established uptrends, and seasonality is entering the most favorable portion of the four-year cycle
• However, breadth issues have been - and continue to - weigh heavily on the stock market
• Below we examine the recent action of three indicators that have a good history of flashing useful warning signs, and which have done so recently
• The good news is that they suggest only short-term indigestion and not a long-term bear market decline

The Nasdaq Titanicburg has crossed a significant threshold

The NASDAQ Titanicburg merges the NASDAQ Titanic Syndrome indicator with the NASDAQ Hindenburg Omen indicator. Both of those indicators look at breadth measurements to identify periods when the major indexes (i.e., the "Wave") are performing well, but the overall performance of individual stocks (i.e., the "current under the surface") is weaker.

Higher NASDAQ Titanicburg readings signal unfavorable market conditions, while lower values are more favorable. This indicator is tailored to track the pulse of the NASDAQ market, helping investors understand the broader trend by incorporating both the Titanic and Hindenburg signals into a single metric. The N