Home » Predicting Crashes
Posted on 15 April 2012 | 4,465 views

Indicators Predicting Stock Market Crash in 2012

The stock market has had a tremendous run from the October 2011 lows, but two indicators are predicting a market correction is due.

First, the level of insider selling is alarming — the last time insider selling peaked was back in May of 2011 (Sell in May and Go Away), which was just prior to the summer stock market correction.

Second, is the divergence between the Dow Jones Transportation Index and the S&P 500. The recent market correction in transports is hinting that there might be more weakness than the S&P 500 is showing us.

Various market sentiment indicators for the S&P 500 don’t always predict a market correction, but taken together with other indicators — this can raise a big warning flag for investors.

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Technorati
  • Mixx
  • Pinterest
  • Google Plus
  • Reddit
  • BlinkList
  • Blogger
  • Tumblr
  • Digg

Tags: , , , , , , , , ,

Rate This Article!
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

One Comment »

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.

IMPORTANT! You need to solve the following simple math (so we know that you are a human) :-)

What is 3 + 9 ?
Please leave these two fields as-is:
CommentLuv badge

Incoming Search Terms!

stock market crash october 2012