Stocks have climbed a mountain of worries this year, ranging from lingering inflation to bank collapses to the possibility that the U.S. Congress might just decide not to pay its bills. But has the run, also fueled by excitement over artificial intelligence, gone too far?
That’s the suggestion of Tom DeMark, who was recently celebrated by the technical analysis CMT Association and is the founder and CEO of DeMark Analytics. He focuses on the number of days — which don’t have to be consecutive — that there was a close lower than the low of two days ago. Subject to various conditions, when the countdown reaches 13, a buy signal is triggered. (The opposite is the case on the way up.)