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Tom DeMark: A 11% Drop In The Market Is Imminent

Tyler Durden's picture


Tom DeMark, whose Sequential and Combo indicators are among the most used indicators by professional technicians and chartists on Wall Street, is out with some chilling words overnight. The Market Studies LLC president told Bloomberg that U.S. stocks are within a week of “a
significant market top” that is likely to precede a drop of at
least 11 percent in the Standard & Poor’s 500 Index
. “I’m pretty confident that in one to two weeks, the market
will be in a descent,” said DeMark, founder and chief executive
officer of Market Studies LLC. “It could be pretty sharp.” And since the Hindenburg Omen in mid-August was prevented from taking its share of scalps only by dint of the Chairman's Woods Hole speech a week later which set off the market on the biggest melt up since... well August of 2009, we wonder if the Fed's Open Market Operations desk will take this warning as a leading indicator to start spreading rumors of another QE expansion. Keep a close eye on those Jon Hilsenrath "leaks."

From Bloomberg:

DeMark’s forecast follows projections from Wall Street strategists that the S&P 500 will climb to 1,384, an annual gain of 10 percent, through the end of the year, according to the average of 12 estimates in a Bloomberg survey. Short selling of companies in the index has fallen to the lowest level in a year, according to Data Explorers, a New York-based research firm.

Steven A. Cohen, founder of Stamford, Connecticut-based SAC Capital Advisors LP, which manages $12 billion, and John H. Burbank, founder of San Francisco-based Passport Capital LLC, which manages $4.2 billion, are partners in Market Studies, DeMark said. The firm has its headquarters near Scottsdale, Arizona.

On a weekly basis, the two indicators signaled on Jan. 14 that a reversal is imminent as the S&P 500 closed at its highest level since August 2008. DeMark expects a decline of at least 11 percent because his work shows that markets move in increments of 5.56 percent, he said. Assuming a drop twice that size is “a conservative estimate,” he said.

The indicators are based on comparisons of the current closing level of the index with closing and intraday levels over previous periods. The reading Jan. 14 was the first signal of a reversal in the S&P 500 since March 2009, when the indicators showed a rebound was imminent, he said. That month the S&P 500 fell to a 12-year low from which it has rebounded more than 90 percent.

All that said in US central planning market, stocks drop you.


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Wed, 01/19/2011 - 10:25 | 886863 Thomas
Thomas's picture

Short timescale predictions are usually wrong.

Wed, 01/19/2011 - 10:27 | 886868 monkeyfaction
monkeyfaction's picture

This will happen 1 second after my put options expire worthless on Friday.

Wed, 01/19/2011 - 13:32 | 887474 dracos_ghost
dracos_ghost's picture

+1. I hear you on that one.


Starve the market. Play Online Poker!!!!

Wed, 01/19/2011 - 14:36 | 887692 theXman
theXman's picture

Seriously, I think you are right. Selloff should start next week or even Friday.

Looks to me that market is drawing a (at least) near-term top on the chart. Today's action is just a warning shot. Expect a strong bounce either tomorrow or Friday. Then the flood gate will be open

Wed, 01/19/2011 - 10:36 | 886895 Turd Ferguson
Turd Ferguson's picture

Hey, I found this cool interview with The Great Hugh Hendry. Worth watching:

Wed, 01/19/2011 - 10:42 | 886906 Turd Ferguson
Turd Ferguson's picture

Yes, anything from Hugh Hendry is definitely junk.

Junk you, too, douchebag.

Wed, 01/19/2011 - 10:58 | 886945 Snidley Whipsnae
Snidley Whipsnae's picture

Take it easy Turd...or, as my dad used to say 'don't let the sons of bitches get you down'.

Hendry is sharp and you have a great site going...What does the azz hat that junked you have going?...Probably a corner in his/her parent's basement. :)

Keep the faith, keep up your good works!

Wed, 01/19/2011 - 11:01 | 886953 Turd Ferguson
Turd Ferguson's picture

Thanks, Snid.

It would be fun to see tyler add some type of positive feedback button so that one coiuld measure the perceived "quality" of each comment.

Wed, 01/19/2011 - 11:02 | 886955 Rodent Freikorps
Rodent Freikorps's picture

Illegitimi non carborundum

Wed, 01/19/2011 - 11:17 | 886992 Snidley Whipsnae
Snidley Whipsnae's picture

I believe that at times we can measure how close we are to the truth by the number of 'negs' our posts receive.

Of course there are outliers to every rule of thumb... like Harry Wanker. :)

Wed, 01/19/2011 - 12:11 | 887138 TruthInSunshine
TruthInSunshine's picture

Speaking of Harry Wanker, who are the dickheads junking Turd Ferguson?

Wed, 01/19/2011 - 12:23 | 887172 RockyRacoon
RockyRacoon's picture

It's the 2011s, man.   Junk is the new thumbs-up.  Admirers all.

Fri, 01/28/2011 - 00:42 | 912068 Freddie
Freddie's picture

I think Turd has created the catch phrase for 2011:

"Junk you, too, douchebag."


Wed, 01/19/2011 - 22:12 | 889050 prophet
prophet's picture

Your contributions demonstrate vision, leadership, quality, and value.

Thu, 01/27/2011 - 23:53 | 911988 Freddie
Freddie's picture

LOL!  Maybe he does not like your hat.

Wed, 01/19/2011 - 10:42 | 886912 DaveyJones
DaveyJones's picture

I predict 12.25% and if that's wrong, I predict everything will eventually go to hell.

Wed, 01/19/2011 - 10:50 | 886923 cosmictrainwreck
cosmictrainwreck's picture

good call !

Wed, 01/19/2011 - 10:25 | 886864 101 years and c...
101 years and counting's picture

only 11%?  that can be done in 10 minutes.


Tue, 01/25/2011 - 08:15 | 902012 Eric Cartman
Eric Cartman's picture

It can, but you have to be there to exit your shorts because it can correct just as fast. lol. flash crash, flash rebound then melt up...

Wed, 01/19/2011 - 10:26 | 886865 SAME AS IT EVER WAS

better get a little dip while you still can.

Wed, 01/19/2011 - 10:26 | 886866 terryg999
terryg999's picture

Maybe it will put some volatility in ES that I can get some decent trades out of...

Wed, 01/19/2011 - 10:27 | 886867 John Law Lives
John Law Lives's picture

The PPT has been put on notice.  Imagine what would happen to the NASDAQ if Steve Jobs saw his health decline to the point that he couldn't work.

Wed, 01/19/2011 - 10:33 | 886883 flacon
flacon's picture

"work" is a subjective term. 

Wed, 01/19/2011 - 17:05 | 888183 Common_Cents22
Common_Cents22's picture

Ever see "Weekend at Bernies"?   Jobs will always be around.

Thu, 01/20/2011 - 01:14 | 889277 Moonrajah
Moonrajah's picture

Personally, I think the recent AMC TV series "The Walking Dead" is a better example. After all, we already see a lot of Jobs-followers either in products or in stocks - looks to me that he must've bitten them sometime before and now the disease (applefication of the brain) is widespread.

Wed, 01/19/2011 - 10:27 | 886869 Vergeltung
Vergeltung's picture

will they let it fail? after all they've done to date. why should they stop now?

Wed, 01/19/2011 - 10:27 | 886871 RobotTrader
RobotTrader's picture

As long as gold keeps rising, a 11% market drop is unlikely.

However, a correction could be close, as the XRT and XLF are now starting to underperform for the first time in a long time.

Wed, 01/19/2011 - 10:48 | 886919 lieutenantjohnchard
lieutenantjohnchard's picture

hey catfish mouth. where's that zlc chart that you slapped up last week mocking the bears? now you're calling for a potential correction at the same time you're braying that "a market drop is unlikely."

Wed, 01/19/2011 - 11:21 | 886965 bluemaster
bluemaster's picture

"most used indicators by professional"   Robo how long pro can survive trading futures using indicators :-)    


monthly chart for Emini , DAX and ASX .


Market will drop when most of us are "long" and CNBC,WSJ and rest of Gestapo media

say blue sky is limit .

Wed, 01/19/2011 - 12:06 | 887121 fiddler_on_the_roof
fiddler_on_the_roof's picture

Robo is right about XRT showing weak hands. I am out of S&P and now am short some retail/restaurant stocks since 2 weeks and they have already dropped 10% since then. I expect S&P to drop now.

Wed, 01/19/2011 - 12:58 | 887320 HarryWanger
HarryWanger's picture

Agreed that a slight 3-4% correction might be looming here. I said last week I thought once we hit 1300 we'd see the pull back. 11% is ridiculous. The pull back should take us to 1250 level which is where the buyers will flood back in.

Wed, 01/19/2011 - 10:30 | 886877 The Axe
The Axe's picture

Please, impossible while Sack has a bloomberg and a printing press. The market is broken, thus it does not and will not function as market. It will be pushed up and up until Ben comes out on to the carrier deck and declares victory.

Wed, 01/19/2011 - 10:34 | 886890 unwashedmass
unwashedmass's picture


didn't you see the picture of their office in the Times? They don't have a bloomberg news terminal.

Wed, 01/19/2011 - 10:30 | 886878 TradingJoe
TradingJoe's picture

Physical PMs and Puts! Rest is History!

Wed, 01/19/2011 - 10:32 | 886880 pat53
pat53's picture

LOL... another top caller, not a chance SPX 1350+, then maybe a small correction

Wed, 01/19/2011 - 10:32 | 886881 tmosley
tmosley's picture

Wow, a top calling troll calling for a top in something other than PMs.

How extraordinary.

Wed, 01/19/2011 - 10:37 | 886898 goldmiddelfinger
goldmiddelfinger's picture

A shit snuffling troll calling TD a troll? You FOOL !!! Beware fools

Wed, 01/19/2011 - 11:42 | 887051 tmosley
tmosley's picture

Tyler didn't write that article.

Also, you're the fool that sold his gold for a 100% profit when he should have gotten a 1000% profit.  

Wed, 01/19/2011 - 11:47 | 887062 goldmiddelfinger
goldmiddelfinger's picture

Silver coins for 100% you FOOL. Not gold.

135% AGQ 7 weeks up to 12/07/10. How about you, You bootlicking moron?


Wed, 01/19/2011 - 13:36 | 887486 The Rock
The Rock's picture

Maybe he meant the other TD (Tom DeMark), the author.  :-)

Wed, 01/19/2011 - 10:32 | 886882 billhilly
billhilly's picture

Blah, blah, blah.  If I had a dime for every "imminent" market drop I'd be a richer man.  Talk about "hopium", I've been waiting for this for 6 months now and am beginning to really believe that the market may NEVER EVER go down again.  Watching my shorts get soiled day after day after freakin day is the ultimate humbling/maddening experience...fookin FED!

Wed, 01/19/2011 - 10:38 | 886896 The Rock
The Rock's picture

I've been waiting for almost 2 fucking years now.

Wed, 01/19/2011 - 12:24 | 887173 anony
anony's picture


Wed, 01/19/2011 - 10:48 | 886921 SheepDog-One
SheepDog-One's picture

Just what they want everyone to think, it can never go down again. Good luck to anyone believing liars lies about altered laws of physics.

Wed, 01/19/2011 - 11:45 | 887059 Sean7k
Sean7k's picture

When you're printing money, it has to flow somewhere. Our job is to figure out where the flow will pool, that is, if your greed drives you to bet against every insider in the market, you have to find the streams of credit.

Will it be bonds? Will it be stocks? Will it be PM's? Can they head fake here and head fake there and scalp your bets? 

Once all the rules are broken, the chance percentages rage. 

Possibly, for once in a long time, it may just be dangerous to be a small speculator. Regardless of experience, once you sail into new waters, without charts, the shoals can capture your every dime.

Wed, 01/19/2011 - 10:34 | 886884 The Rock
The Rock's picture

Yeah right, every time "they" drag out Faber, Fleckenstein, et al, the market suckers in the shorts and melts up. Where's Taleb?

Wed, 01/19/2011 - 10:34 | 886889 oh_bama
oh_bama's picture

I am hoping a 11% dip, then I can buy the f**king dip!!

Wed, 01/19/2011 - 10:35 | 886891 bunkermeatheadp...
bunkermeatheadprogeny's picture

Sectors that lead rallies typically lead the sharp declines. The financials led this rally due to QE2, if financials do not lead an overall market decline, it will show just how fucked up this faux rally has been.

Wed, 01/19/2011 - 10:35 | 886894 max2205
max2205's picture

Ben has to have the 5 min spy chart up on his laptop. They hit right at sell signals. Chartists are losing their minds

Wed, 01/19/2011 - 10:44 | 886915 Snidley Whipsnae
Snidley Whipsnae's picture

"Chartists are losing their minds"

...and, their jobs. Who needs a chartist when charts have become irrelevent?


Wed, 01/19/2011 - 10:57 | 886944 Rodent Freikorps
Rodent Freikorps's picture

I'm starting a new company. We will use goat entrails. It is old school.

Wed, 01/19/2011 - 11:22 | 887003 Snidley Whipsnae
Snidley Whipsnae's picture

You will need an investment bank for your IPO... Why not Goldman Slackers?

BTW, make sure that you have short positions prior to IPO... GS is good at structuring these deals. They will engineer a neg position derivative that will make you tons of dough while touting your IPO.

Wed, 01/19/2011 - 11:31 | 887016 Rodent Freikorps
Rodent Freikorps's picture


I'm also thinking of a spin-off goat burrito franchise.

If I can figure out how to include temple prostitutes, I should be a billionaire in no time.

Wed, 01/19/2011 - 11:55 | 887086 Sean7k
Sean7k's picture

Just have to buy a FED building- the prostitutes are included and you have government protection to boot!

Wed, 01/19/2011 - 10:37 | 886897 dickbar
dickbar's picture

DeMark... biggest snake oil salesman ever... the amount of sheeple that follow his rubbish indicators that change their mind whenever thy like is beyond me... there is so little free thought in this industry any more... hence the paucity of performance

Wed, 01/19/2011 - 10:55 | 886939 DeMarkTrader
DeMarkTrader's picture

A few of his major indicators (Sequential and D-Wave) can re-print or change their mind... but they are only after the fact if you are not keeping up with his rules. Chart after chart after chart with his Sequential on it and especially the DeMarker I oscillator can make you a lot of cash.


I have traded DeMark since early 2009, and they are quite good.


His entry rules also are fantastic.

Wed, 01/19/2011 - 11:50 | 887072 dickbar
dickbar's picture

2 years... you must be minted then

Thu, 01/27/2011 - 01:37 | 908592 HAL 9000
HAL 9000's picture

Hi DMT I track a number of Demark signals using Excel.  - a few questions if you don't mind -

1) What chart program do you use?

2) How do you use the Demarker I - by itself or combined with another indicator?

I use Demark (typically Sequential or Combo) to time entries into value stocks.

Demark info is hard to find on the web.  I do have the Demark Bloomberg manual and I keep a lot of stuff I find at my website if interested:


Wed, 01/19/2011 - 10:39 | 886901 topcallingtroll
topcallingtroll's picture

Even 20 percent is a yawner. If u worry about 11 percent then you are playing in the wrong market. My local bank has cd teaser rates of two percent for those who freak out over volatility.

Wed, 01/19/2011 - 10:41 | 886904 Snidley Whipsnae
Snidley Whipsnae's picture

An 11% drop? Only happens if POMO operations are scaled back 11%!...assuming a direct correlation of course.

If the Fed/CBs cant beat down PMs without tanking stocks by 11%, are they willing to do it?

How desperate are the azz hats to stop the rise in PMs?

Of course, their intention could be to cause a rush out of equities into treasuries in an attempt to stem the rise in interest rates...

This is what happens when the Fed/CBs begin attempts to micro manage economies. There is absolutely no price discovery mechanism left...except when the azz hats decide to create a new surprise...which only the FOF (friends of Fed) are privy to.



Wed, 01/19/2011 - 10:42 | 886908 AccreditedEYE
AccreditedEYE's picture

What is this... "d..r..o..p" you speak of? The market goes up... it only goes up.

Wed, 01/19/2011 - 10:42 | 886910 bunkermeatheadp...
bunkermeatheadprogeny's picture

Obviously, fair market value no longer exists thanks to the Fed.

Just went on to look up FMV:

Legal Dictionary

Main Entry: fair market value
Function: noun
:  a price at which buyers and sellers both having reasonable knowledge of the property and being under no compulsion are willing to do business Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
Cite This Source

Wed, 01/19/2011 - 10:44 | 886916 Hephasteus
Hephasteus's picture

Ya. We are like buried and drowning in compulsion. So that's NOT going to happen.

Wed, 01/19/2011 - 10:42 | 886911 SAME AS IT EVER WAS

benny and the bots in 3...2...1

Wed, 01/19/2011 - 10:43 | 886914 Oh regional Indian
Oh regional Indian's picture

Regardless of what chartologists or proctologists say, a big shit is immanent. No doubt about it. Timing it would be suicidal.

This is as good a time as any to make a move away from the market. If you are lucky enough to be using play money, go for it. Traders who depend on forecastable futures, especially using TA should watch out. The fundamental basis of TA, which I believe is efficient markets, went out of the window, long ago.

We are in uncharted territory. With no map, it's good to develop an eye for the stars, larger patterns. Then, the darkness becomes a friend, not an enemy.


Wed, 01/19/2011 - 10:45 | 886918 Eddie Stobart
Eddie Stobart's picture

Doesn't he know the rules have changed?

A FED flush now beats a pair of indicators

Wed, 01/19/2011 - 10:51 | 886928 snowball777
snowball777's picture

I think you mean a Fed pair (Sack/Frost) beats a 'straight flush'.

Wed, 01/19/2011 - 11:01 | 886954 Eddie Stobart
Eddie Stobart's picture

Yes that's exactly what I meant. It must have been a typo.

Wed, 01/19/2011 - 10:48 | 886920 goldmiddelfinger
goldmiddelfinger's picture

VIX sell signal triggered yesterday

Wed, 01/19/2011 - 10:51 | 886930 Dr. Engali
Dr. Engali's picture

As long as uncle ben is printing...this markets going higher.

Wed, 01/19/2011 - 11:00 | 886938 Travelerjim
Travelerjim's picture


Wed, 01/19/2011 - 11:03 | 886958 Orly
Orly's picture

For 4X, go to

For a Calendar of economic events, go to

Wed, 01/19/2011 - 11:11 | 886977 Snidley Whipsnae
Snidley Whipsnae's picture

Best scribbler on an economic site: Bill Bonner at 'The Daily Reckoning'

He is a great writer and could have probably made it with prose or poetry.

Bonner (among few others) also made the call on gold being THE asset to own for the next ten years back in 2000.

I like some others... Illargi at 'The Automatic Earth', 'Jesse's Cafe Americain', Doug Noland at 'Prudent Bear', ...leaving out a bunch.

If you go to 'Dollar Collapse' you will find a compilation of articles by many that are definitely not main stream.

...also, don't forget FOFA and their current and compilation of articles from the past...

Yes, I am leaving out a lot of sites. BTW, don't forget Turd Furgeson's site... 'Along the Watchtower Gold' ...


Wed, 01/19/2011 - 12:38 | 887235 subqtaneous
subqtaneous's picture

Just been awaken from a decades-long cryogenic slumber?


Wed, 01/19/2011 - 11:03 | 886957 deepsouthdoug
deepsouthdoug's picture

Charles Nenner said a correction would begin no later than 1/25.

Wed, 01/19/2011 - 11:07 | 886966 Caviar Emptor
Caviar Emptor's picture

Could just be an attempt to puff up some short interest in this market that never sells and also is lacking in new money. Then the setup would be perfect for a short squeeze after a phony 'head and shoulders' and a new Fed announcement that they'll be filling the Reflecting Pool near the Washington Monument with money, available to all

Wed, 01/19/2011 - 11:05 | 886968 Lone Mad Minute...
Lone Mad Minute Medic's picture


Wed, 01/19/2011 - 12:21 | 887165 anony
anony's picture

Buy The Fucking Dip.

Wed, 01/19/2011 - 11:10 | 886974 whatz that smell
whatz that smell's picture

bong water.

Wed, 01/19/2011 - 13:06 | 887358 Whats that smell
Whats that smell's picture

Let me spoon feed you: The smell is a dirty Gov't robbing me and lying about it, the smell is a bunch of stupid 'merican kids on their cell not seeing anything, that smell is bankers robbing my neighbors. Go back to World of Warcraft or something or better yet go put some fries on the lunch crowd is coming.

Wed, 01/19/2011 - 11:13 | 886983 whatz that smell
whatz that smell's picture

douche bag.

Wed, 01/19/2011 - 11:19 | 886997 UnRealized Reality
UnRealized Reality's picture

Yawn!! Any day now. How long has ZH been posting "The Crash". Well I guess you need two sides to make a market and if the MSM is the sell side, ZH is the Buy side.

Wed, 01/19/2011 - 11:36 | 887029 SheepDog-One
SheepDog-One's picture

Funny part is, as soon as the wheels do fall off this jalopy then all the bulls will have of course sold the day before and claim they called it, as anyone could have seen THAT comin...

Wed, 01/19/2011 - 11:44 | 887054 Cpl Hicks
Cpl Hicks's picture

You got no real argument from me except the MSM isn't actually buying or selling- they're just doing their Masters bidding.

Wed, 01/19/2011 - 11:24 | 887005 BennyBoy
BennyBoy's picture




Wed, 01/19/2011 - 11:32 | 887017 reddragonleo
reddragonleo's picture

This matches up perfectly with the hitting of a "fake print" (FP) I've had since last March.  It showed the Dia at 118.16 (

We pierced through it a little, yesterday and today the market is selling off.  I believe the high is now in, and we are headed down to the next FP I have of 106.20 on the spy, and then down to Dow 8300 (another FP).

Wed, 01/19/2011 - 11:38 | 887030 Lone Mad Minute...
Lone Mad Minute Medic's picture

Don't BTFD?


Oh my! what to do?

Wed, 01/19/2011 - 11:39 | 887033 p19581
p19581's picture

DeMark is saying this a.m. that he was misquoted by the journalist.

Wed, 01/19/2011 - 11:43 | 887052 Salinger
Salinger's picture

where did he say that?

Wed, 01/19/2011 - 12:55 | 887308 p19581
p19581's picture

An e-mail he wrote was forwarded by a friend:

"This interview and article were misconstrued and incorrect and incomplete    I was referring to the ftse index as being the bellwether for euro and u.s. markets and currently daily ftse is both 11 td combo and 11 td sequential and 13’s could come as early as Friday.  There were weekly spx combo 13’s last week     nifty and shanghai are making bottoms "

Wed, 01/19/2011 - 11:41 | 887047 Salinger
Salinger's picture

Dedication and Discipline: Market Timing with Tom DeMark, Part 1

Dedication and Discipline: Market Timing with Tom DeMark, Part 2

Wed, 01/19/2011 - 11:44 | 887055 plocequ1
plocequ1's picture

11% drop in the market is innement?

Mayor Larry Vaughn from Jaws says, "Love to prove that wouldn't you? Get your name in National Geographic"

Wed, 01/19/2011 - 11:45 | 887057 ATG
ATG's picture

Look out below...

Wed, 01/19/2011 - 11:47 | 887063 treasurefish
treasurefish's picture

Check out the flash crash that happened this morning with SLV - that nobody noticed.

Wed, 01/19/2011 - 12:01 | 887104 Sean7k
Sean7k's picture

That was Blythe and her typical 10:00 am smash down. We not only notice it, we expect it. Try the morning Turd.

Wed, 01/19/2011 - 12:07 | 887125 reddragonleo
reddragonleo's picture

It's common that "they" (TPTB) will tell the other insiders where they plan to take the market using these prints.  Be sure to capture a screen shot of any large one's you see and email me.  I have a many of these "fake prints", and that's what my site is known for.  I think our next major target down is 106.46 spy (, so be ready for wild swings.


Wed, 01/19/2011 - 12:05 | 887114 omer10
omer10's picture

What is the problem with u bears? I am not a perma bear but started shorting this year ovver 1260. The market WILL go down it always does , i am keeping positions small adding to shorts at bollinger bands covering with small profits. What if it goes to 1400?so be it but this market is up 25% almost in less thN 6 months. Risk is on the long side.

Wed, 01/19/2011 - 12:36 | 887225 anony
anony's picture

The only thing on the planet, in the universe, the entire space/time continuum that is imminent at 11:36 a.m. EST is---get ready for it--- Petit Dejeuner.

Wed, 01/19/2011 - 12:40 | 887240 TruthInSunshine
TruthInSunshine's picture

There's a nasty rumor Lloyd Blankfein is posting here under the alias 'Harry Wanger.'

Just a heads up. Peace out.

Wed, 01/19/2011 - 12:49 | 887281 daybyday
daybyday's picture

This not hard to figure out…We are back at the same level the day Benenbi band shorts in 2008.  A massive gap was left open that day....the gap has been closed so now we need to trade the other way and close the 50 gaps left open to the down side...i do not need squiggly lines to figure that out....just sell it to 666 on sp….the gap is always closed.

Wed, 01/19/2011 - 12:57 | 887316 RockyRacoon
RockyRacoon's picture

I'd say the proles are getting restless. 

AFL-CIO protesters attempt to break up MBA conference

Wed, 01/19/2011 - 13:20 | 887438 sbenard
sbenard's picture

It's about time! We need a good correction. One of the fundamental laws that govern this world is that "all trends must end"! It's not healthy for a market to go one direction ALL the time!

Wed, 01/19/2011 - 13:52 | 887542 fiddler_on_the_roof
fiddler_on_the_roof's picture

Today S&P is falling as well as DXY. We are in turning phase as I had posted here several months ago.

Wed, 01/19/2011 - 16:07 | 887944 Alterity
Alterity's picture

his work shows that markets move in increments of 5.56 percent, he said.


5.56 huh?  That sounds familiar for some reason...

Thu, 01/27/2011 - 23:52 | 911981 Freddie
Freddie's picture

5.56 or .223?   ;-)

Wed, 01/19/2011 - 16:55 | 888130 downrodeo
downrodeo's picture

i just hope i recall this article in two weeks. Damn my turbo powered goldfish memory to hell!

Wed, 01/19/2011 - 17:07 | 888193 Common_Cents22
Common_Cents22's picture

uh oh, CNBS is talking about a correction, looks like the market is going higher!

Wed, 01/19/2011 - 17:40 | 888360 ivars
ivars's picture

11% over  4 month time. May be a bit sharper fall at the beginning. Following exponetial decline over these 4 months. Than an uptick to DJIA 11000, in May-June-July 2011, and then, finally, You can start shorting safely for the rest of 2011 and into January-March 2012, down to 7500.

Wed, 01/19/2011 - 18:20 | 888518 naughtius maximus
naughtius maximus's picture

My dowsing rod says this guy is wrong.

Do NOT follow this link or you will be banned from the site!