Tom DeMark: S&P Is Operating Against The Trend; Weekly, Monthly 13s Still In Down Mode (10/20/2011)

Source: Bloomberg
Tom DeMark, founder of Market Studies and creator of the DeMark Indicators, was on Bloomberg Television on 10/20/2011 sharing his views on the market. In bold letters below is his overall view that the market is still in a downtrend. His immediate-term outlook was more confusing though, at least in words. He said he sees downside risk in the near-term after this monster rally off of the October low, which generated a daily 13 signal. However, he said there's a possibility that the market could thrust to 1,250 on a positive catalyst out of Europe, but that would be "indicative of a market top" on good news. That is for the immediate term only. He thinks if the S&P hits 1246-1254 and sells off, the market would see an "extended period of sideways movement and then be resolved to the downside." Watch the video for more info.
"On May 2, we had a coincidence of what we call the combo and sequential indicators. They all spoke on a monthly, weekly and daily basis; they all produced 13s exactly the day and the week of May 2 (also in February). And at the August 9 low, combo and sequential only spoke of one voice, and that was a daily 13. The weekly and monthly are still in a down mode. So we're really operating against the trend."




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