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00:00This segment is really going to revolve around other sell offs that we've seen and just taking the Dow as an example from eighty nine also to twenty nine with the Great Depression and then where we are now. Can you walk me through what all your models are telling you about how much more downside we have . Well the comparisons that are made by most people right now I mean if I asked the probably weak was where market is close to what occurred in 1987 and 1929 obviously at the top of the market when we were breaking down in our work we had projected that the market would at least the S & P bases would decline at least something comparable to 1987. And that's what we're experiencing right now. But there is a an intermediate period which I think most people are look overlooking and that's 2011 when the market decline. And I think people define bear market is 20 percent 19 percent 20 percent whereas the 1987 decline was thirty eight point two percent if you might say . And really 19 percent is one half of the other 38 percent. And there's a there's a there's something it's a derivative really of what occurred in the in 1987. If you look at the chart which you have right now you'll see that the market from August of 1987 into the low which was recorded October 3rd of that year the market declined exactly thirty eight point two percent when we were following the market in 1987 or something called the hypothetical Dow. And then hypothetical Dow was calculated based upon each one of the components Nadel average high at that particular time and Lou at that particular time were added together and a fictitious number was included. And believe it or not in 1987 the exact law was thirty eight point two percent . We're using that same model here because the market obviously declined more than that 19 20 percent which most people are accustomed to seeing in the last 2 6 7 year declines . The something we use in addition to price projections is timing . And we use a model called sequential on combo two models. And at the 1987 look exactly the day at a low that was a 13 combo and then subsequently was a 13 sequential which occurred in December. We're on that path right now or have been always throughout this entire decline to record a 13 decline 13 combo buy at the low which we think will still occur tomorrow. That's a possibility that Dow Jones average we have projected downside eighteen thousand one hundred eighty three is our downside projection. We're moving toward that level. The S & P average was projection downside was twenty ninety seven and moving there as well. I know we did get a rally this morning overnight. We're moving one for one with our projection and we got a rally today with the Fed News and we think we're a firm believer of this market's bottom not because of a smart buying it's because of a lack of selling figuratively speaking in the market's top not because of smart sellers. It's just an absence of buying. Now when markets make lows it's not induced or caused by a good news . Good news merely sets up a vacuum after one or two days rally such as we're seeing today. And then there's a vacuum on the downside when because of short covering the market collapses further. So I wouldn't expect this market to to continue to rally today will probably move lower . I guess say we're on path tomorrow to record the low and that would be something that that's consistent with most of our other averages. There is the European markets. We'll do the same if they can undercut last week's lows. Now we do have something that's out of alignment and FTSE S & P. We do not have the possibility of a third what we call a 13 bottom tomorrow. It's only going to be at 10 today and possibly 11:00 tomorrow. So it's telling us that we're going to come back and revisit this law whatever we recorded tomorrow. We'll revisit the lows of the next month and six weeks. And at that time we'll call it record something with which we refer to as a sequential bottom with an undercut of the prior law. That's typically what happens. It happened in 1974. The October alone and subsequent December low with a lower close. It happened in 1980 with the bunker hunt decline. It happened in 2000. One with the October loan and the subsequent. So we have we have secondary tests . We saw it in 2007 and 8 or 7 and 8 or 9 I should say. And then we've had it in recent lows as well. So we are going to see a bottom but we'll see a rally. It could be. It could be . Pretty sharp maybe 11 percent but we'll just move sideways for a period of time . I can't see the market breaking much lower than the levels we've given. Not at this time. It's going to take a while and obviously take a while for the fundamentals to catch up as well . Tom we only have about 45 seconds but as a market participant and how do you handle that when you know you're to see more declines than you could see some rallies in between. I think that the risk is more we're going to be after we reach those levels. The risk is going to be the upside. And I think it's like I said it's going to be a trading range. It does sound complicated way share today. But we do have for the Bloomberg users a a secondary service now called Symbolic Mark. And we're also offering it to retail people too. So it's the explanation is there . We've we've we're not look we we're seeing other other things happen too with the VIX and that that the three times VIX we're gonna see new highs. And in the in the VIX as well as it the three times VIX and a you VIX y but only a one or two days. So we know we're going to see lowest below what we what we recorded Friday and today. So .

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U.S. Stocks Won't Move Much Lower From Current Levels, Tom DeMark Predicts

Tom DeMark, founder and chief executive officer of DeMark Analytics, compares the recent stock market sell-off to the biggest market sell-offs in the past. He speaks with Bloomberg’s Alix Steel on "Bloomberg Daybreak: Americas." (Source: Bloomberg)

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