Oct. 20 (Bloomberg) -- The failure of the Standard & Poor’s 500 Index to keep rising after gaining 2 percent on Oct. 18 may mean it’s poised to fall, according to Tom DeMark, the creator of indicators to show turning points in markets.
DeMark, whose prediction last month that the S&P 500’s decline would stop at 1,076 proved prescient when the index bottomed at 1,074.77, said he’s uncertain about the direction of the market now. Two days ago, he said the index might climb as high as 1,254 before falling as much as 5.6 percent.
“It’s disconcerting the fact that the market had three attempts these past four to five trading days, and none of the times it could prove itself that it had the vigor to move higher,” DeMark, an adviser to SAC Capital Advisors Inc.’s Steven A. Cohen, said in a Bloomberg Television interview today. “The market should have followed through after that big move two days ago, and it failed. And because it failed, it made us a little uncertain about the near-term direction.”
--Editors: Chris Nagi, Nick Baker
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