DeMark Says S&P 500 May Reach 1,342 Next Week Before Falling

The Standard & Poor’s 500 Index may approach 1,342 by Jan. 24 before retreating, said Tom DeMark.

The benchmark measure of U.S. equities closed at 1,315.38 today after rallying 4.6 percent in 2012 and 20 percent since Oct. 3. He said in an interview today that the measure may get to between 1,338 and 1,342, a level last seen in July.

“We still are confident we will hit that level or close to that level,” DeMark, the founder of Market Studies LLC and creator of indicators to show turning points in securities, said today on “Street Smart” on Bloomberg Television. “We could conceivably see the high Tuesday at the opening, if not at the close of trading,” he said. “We’re very close.”

DeMark predicted on Dec. 5 that the S&P 500 would advance to between 1,330 and 1,345 last month before the rally would reverse. The S&P 500 rose to 1,269.37 intraday on Dec. 27 before ending the year with a 0.04 point loss to 1,257.60, the smallest annual change since 1947. DeMark’s forecast in September that the S&P 500’s decline would stop at 1,076 proved prescient when the index bottomed at 1,074.77 intraday on Oct. 4.