pay attention or pay the offer

Fosback’s market logic index from the 1970s is the precursor to the oft-discussed “Hindenberg Omen.” The index is the lesser of NYSE new highs or new lows as a % of total issues traded on a 10-day basis. Sell signals occur when the index crosses above a 2% threshold. The chart shows this indicators usefulness at last summer’s market high.

click to enlarge