So with the Hindenburg Omen and the 'death cross' both indicating, in simplified terms, that volume is dissipating out of the stocks, but stocks are still sitting at relatively higher levels (price). The rug (liquidity...what is left) can get pulled very quickly. Hence crash.
Note: 5.6billion shares trades on Wall Street 30th Aug 2010, slowest for the year.
And to top it,
Japan: "Nomura/JMMA PMI fell to 50.1 in August, from 52.8, lowest since 48.2 in June 2009, just 0.1 point above the "boom/bust" 50 level"
China: (Telegraph): "Moody's rating agency is concerned that China is powering its economic growth by raising the gearing of the banking system, leaving the country exposed if the outlook darkens. The banks are expanding their balance sheets rapidly through higher leverage a policy that relies entirely on the continuance of torrid growth. "Pain lies ahead if China's economic growth slows and the banking business model cannot adjust accordingly in time," said Yvonne Zhang, the agency's senior China analyst"
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