Tom DeMark, the chief executive officer of DeMark Analytics LLC, said in an interview on CNBC that U.S. stocks have reached an “inflection point” that resembles the period prior to the 1929 stock-market crash.
“So far, everything’s aligned,” he said. “We think the next two to three days are extremely critical.”
“If we were to get, just as an example, today were to be an up close,” he said. “And then tomorrow, we close down, and we follow a lower opening the next day and trade a little weaker. We’re probably going to unravel quickly.”
“If we get a down close today and tomorrow we open lower and trade lower, we’re probably going to unravel. We’re watching very carefully because that sequence is very important.”
The Standard & Poor’s 500 Index could plunge to about 1,100, according to DeMark. That would be a 40 percent tumble from its record of 1,848.38 on Jan. 15.