This means that a 1929 like stock market crash might occur around April of this year. Tom DeMark has been in the investment business over the last 45 year and he stumbled upon this pattern at the end of 2013 when comparing patterns.
What do you think?
“Well, we could have had it last week. There was a 10% chance that could happen. It probably won’t and the market will rally and we have seen the rally now,” Tom said. “There’s two scenarios currently: If the Dow Jones Average closes above 16,000 next Monday and Tuesday, then there’s a chance yes, we could go down. And it could be something comparable to 1987. We’re shifting things a little. Our two templates, 1929, 1987 are being adjusted. It’s possible that could happen.This looks pretty spooky. Many experts feel a big crash is going to happen in the next 18 months, and Tom DeMark states that before a sharp decline, there is always a rally like we are having this week.
“We have to have a trigger. The trigger would be we’d have to decline on the S&P average below 1762,” he continued. “We have been using that for some time… It’s so widely known right now, and we are a firm believer, that markets have bottomed because the last seller, figuratively speaking, has sold. We think a lot of people have sold based upon this comparison. So it may be premature right now, but it’s going to happen.”