Tom DeMark: S&P is Close to a Top, Bullish on DAX, Bearish on Bunds (Charts)

Tom DeMark, creator of the DeMark Indicators (used to time market exhaustion), was on BloombergTV last Friday and made a call that the S&P 500 would top out between 1,338-1,342 this week (specifically on Tuesday). It closed on Friday at 1,315. Watch the interview after the jump for more details. The chart definitely looks like it's getting exhausted after this nice rally. On December 5, DeMark predicted that the S&P would hit 1330-1345 when it was trading at 1,258. He thought it would hit by Christmas, so he was a month off. The downtrend from the 2007 peak and 2011 high hits around 1,330 today.

He is also bullish on the German stock market (Frankfurt DAX) and bearish on German bunds (government bonds). I charted out the DAX and German Bund ETN (BUNL) below. Actually, BUNT (3x German Bund ETN) looks interesting as well. German bund yields are available at Bloomberg.com (10-year German bund yield). Interesting. So, are DeMark's indicators predicting that a "hard Greek default" will be averted? Or is his call for the short-term.

Greece can't make a €14 billion bond payment on March 20, so it is trying to cut a deal with private creditors to swap into new Greek debt at a loss so it can get bailout money from the European Union and IMF. Read the articles below for more information. There's a meeting today with finance ministers and an important EU summit on January 30. Wow, EUR/USD is up 0.83% at 1.30. Something is up, at least in the short-term.

Greece Crisis Set to Dominate Euro Talks (WSJ)
EURO GOVT-Uncertainty over Greek talks boosts German Bunds (Reuters)
Euro Leaders Seek Crisis Fix as Greek Talks Drag On (Bloomberg)
IIF says creditors at limits of "voluntary" Greek deal, 65-70% loss (Reuters)
On Greek PSI - Headlines And Reality (by Peter Tchir at ZeroHedge)

Source: freestockcharts.com



Source: Bloomberg.com