Expert Says S&P Will Surge in Next Two Weeks!

The blue-chip S&P 500 Index will surge 5 percent to reach a new record level in the next two weeks, investing expert Tom DeMark stated recently. He estimated that the benchmark index will rise to a level of 1,480 before global market participants become tired of the benchmark and begin selling it, according to Bloomberg.

Accurate Forecaster

Having studied the inflection points for the movements of asset prices and provided consulting to hedge funds such as George Soros’s Soros Fund Management LLC, DeMark provided an accurate prediction when he stated that the S&P would stop depreciating at 1,076 and the group of stocks started moving upward again once it reached 1,074.77 on Oct. 4, the news source reports.

‘Unfinished Business’

Demark wrote in an emailed statement that the index’s rally will fade out before it falls between 12 and 17 percent, the media outlet reports. He said that “there is still some unfinished business upside that will totally surprise and shock most market followers,” and that the recent “rally is a solo move in a sense that the overall market trend has been down since September 14.”

The S&P 500 has spiked as much as 15 percent after falling to its recent low on June 1, as markets were bolstered by news that central banks around the world will stimulate the economy through monetary easing, according to the news source. After reaching 1,474.51, its highest value of 2012, the index has since fallen 3.9 percent as markets have been roiled by worries that corporate earnings will not be in line with the expectations of analysts.

No Indicator for End of Rally

DeMark said that the S&P 500 has not exhibited behavior that would indicate that its rally is over, the media outlet reports. He said that other indices such as the Nasdaq have already reached their top value since September and have subsequently declined.

He said that the current inability of the index to complete a ‘top countdown’ is similar to its behavior in August and September of 2011, when the group of stocks did not indicate that it had reached a valley, according to the news source.

Bloomberg reported on October 22 that the blue-chip S&P 500 Index had surged 14 percent year-to-date, and as a result had displayed better performance than any other major asset class. 

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