Tom DeMark Says U.S. Stocks at Risk of 11% Decline
by The Daily Lede
U.S. stocks will fall 11 percent starting as soon as next week should some price patterns come true, according to Tom DeMark, the creator of indicators to show turning points in securities.
The Standard & Poor’s 500 Index (SPX) will have peaked if it closes above 1,891 on one or two instances without also falling to 1,884 in intraday trading, DeMark said in a phone interview yesterday. He made similar statements in February, saying that if certain conditions were met, U.S. stocks had reached a point resembling the time before the 1929 market crash. The S&P 500 rallied 8 percent over the next two months.
“If these price objectives are fulfilled, then I’m very confident we’ll make a significant high,” said DeMark, the founder of DeMark Analytics LLC in Scottsdale, Arizona, who has spent more than 40 years developing market-timing indicators. “These indexes could be topping very soon.”