U.S. stocks may slip to new lows in the next few weeks, setting the stage for a rally of more than 20 percent in the Standard & Poor’s 500 Index, said Tom DeMark, the creator of indicators meant to identify turning points in the price of securities. The S&P 500, which closed at 1,192.76 yesterday, will probably drop below the 11-month low of 1,119.46 set on Aug. 8 before surging above 1,363.61, its peak on April 29, DeMark said during an interview in London today. The rebound may last two to three months and also push the Dow Jones Industrial Average and Nasdaq Composite Index (CCMP) above their 2011 highs, DeMark said. European banks including Societe Generale SA “look like buys” after the shares tumbled this month, he said.
“Mad Money” host Jim Cramer takes a look at technical analysis from longtime analyst Tom DeMark.