DeMark Says Chinese Stocks Are at Make-or-Break Inflection Point
- Shanghai Composite needs to close above 3,200 to avoid selloff
- Failure to close above that level clears way for move to 2,590
DeMark Analytics LLC Founder Tom DeMark
Andrew Harrer/BloombergThis article is for subscribers only.
Tom DeMark, who predicted this month’s selloff in Chinese stocks, said the Shanghai Composite Index may extend its decline by 13 percent should it stay below a critical technical level on Wednesday.
A failure to close above 3,200, or almost 8 percent higher than the Tuesday’s level, may open the way for a move to 2,590, which would be the lowest since November, according to DeMark, founder of DeMark Analytics. An advance above that level, however, would signal the stock rout which has wiped out more than $4 trillion in market value, may be over, he said.