Market crash indicator with spotty track record 'Hindenburg Omen' triggered last week

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The bearish signal has fired up at a time when investors are concerned poor market breadth could spell weakness for stocks that are at all-time highs.

It's possible that not all is well on Wall Street, even with the stock market at all-time highs. The ominous "Hindenburg Omen" was triggered last week, StockCharts.com chief market technician David Keller noted Monday. The Hindenburg Omen takes into account the number of the percentage of stocks in an exchange making 52-week highs and lows — along with other breadth metrics — to gauge the potential for a market crash.

He anticipates the S & P 500 could climb to 5,700 over the next several months on the momentum that has carried the major benchmarks to all-time highs in May. The target represents a roughly 7% gain from where the broader index closed Friday. "If you're looking at the market, I still think the market appears healthy because the largest names still appear very healthy," O'Hara said. "When that has a big influence on the index, I think the index is fine.

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