Tom DeMark Charting a 1929 Style Collapse

By on February 5, 2014

DeMark AnalyticsFamed market timer of the hedge fund stars, Tom DeMark, founder and CEO of DeMark Analytics, LLC, sees the next few days as critical to the survival of the bull market in an interview on CNBC today. DeMark’s chart showing the correlation between today’s S&P 500 versus the Dow Jones Industrial Average in 1929 has been making the rounds and is indeed uncannily eery.

On October 9th, 2013, DeMark said he forecasted a rally of 12.6% to coincide with the rally that occurred one month before the peak in 1929; which also happened to be exactly 12.6%. DeMark said we are currently at the inflection point, similar to 1929, where the stock market unraveled and added, “we think the next two to three days are extremely critical.”

Bull Market Compared to 1929

DeMark said if today was an up close and tomorrow the market closes down, followed by a lower opening the next day, “we are probably going to unravel quickly.” DeMark explained further if the market closes down today and opens lower tomorrow, then the market will also unravel and any news on Friday will be perceived as negative.

The interview continued with Demark commenting on the importance of the sequence of days which happens to be 23 and the potential downside which he sees as 40% off the high, or 1,100 on the S&P 500.

6 Comments

  1. Bjorn Magnusson

    February 7, 2014 at 2:25 pm

    Denmark said the s&p would top out at 1567 in March 2013. This latest projection looks to be a bust also.

  2. SuperInvestor

    February 13, 2014 at 6:06 pm

    Nice interview. Funny how when asked about his track record DeMark acts like he doesn’t know.

  3. Bob Dylan

    February 16, 2014 at 3:36 pm

    How many roads most a man walk down
    Before you call him a man ?
    How many seas must a white dove sail
    Before she sleeps in the sand ?
    Yes, how many times must the cannon balls fly
    Before they’re forever banned ?
    The answer my friend is blowin’ in the wind
    The answer is blowin’ in the wind.

  4. Burt Livingston

    February 16, 2014 at 8:41 pm

    I tried to warn your readers about this used car salesman last week but you apparently censored my comments.

  5. Minskyman

    February 20, 2014 at 4:31 pm

    This chart being paraded around has been altered to make it look parallel to a time past. It is a fraud and should be ignored. A 100 percent gain in 28 & 29 has been equated to the recent 30 percent advance.

  6. Mohnish Pabrai

    March 18, 2014 at 1:58 pm

    Tom Demark’s analog remains in effect until the Dow makes a new high. Response from Tom:

    http://thefelderreport.com/2014/03/13/for-everyone-who-thinks-tom-demarks-1929-analog-is-a-joke/

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