Veteran Technical Analyst Says US Stocks Can Top This Week

Technical analyst Tom DeMark is eyeing a potential top for stocks this week. 

Nasdaq – Daily Chart

NASDAQ – Daily Chart

The price of the Nasdaq index is close to the all-time highs set back in late 2021. The potential for a high can be with a test of previous highs. 

DeMark’s system looks at the number of days an asset sees a close lower than the low of two days prior. When the count reaches 13, a buy signal is triggered. He also says that a market does not tend to bottom on lousy news and top on good news; instead, they base it on when the last seller has sold, or the last buyer has bought.

In October, DeMark, the founder and CEO of DeMark Analytics, told MarketWatch that the stock market was due for a three to four-week rally that would last three to four weeks.  

“Many have asked when a reversal of trend begins and is confirmed… once there are two consecutive closes less than the close 4 days earlier the trend should then be downside,” said DeMark. 

The calendar this week has US employment figures released on Friday. A more substantial figure of 180k is expected after 150k last month. That is expected to show a 3.9% unemployment rate. Consumer sentiment figures also come on that day. 

Stocks were mixed on Tuesday despite a fall in bond yields. A report on October job openings fell more than expected to a 2-1/2 year low. That hints of a cooling jobs market would be a dovish factor for the Federal Reserve. The NFP number on Friday will have more meaning after a slowdown in openings. 

Tesla was a market leader, up by 4% after reporting its China November vehicle shipments rose 14.3% m/m to 82,432. There was a negative for the company with a recent workers strike in Sweden moving to neighbouring Denmark. 

The Nasdaq was looking at a flat close on the day, but traders should watch for signs of increased selling if the buying runs out of steam around here.

Recent News
Start Trading Now !

Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.

Popular posts
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxvnmprd.wpenginepowered.com/en-au/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://atfxconnect.com