DeMark Sees China Index Rally as Bears Exhausted Below 1,960
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The Shanghai Composite Index will rally 48 percent within nine months after its decline below 1,960 signaled selling has climaxed, according to Tom DeMark, the creator of indicators to show turning points in securities.
The benchmark index for Chinese equities will advance to 2,900 after its decline produced a buy signal on the Sequential and Combo charts, designed to identify market tops and bottoms, said DeMark, who has spent more than 40 years developing market-timing indicators. The Shanghai index rose 0.8 percent to 1,975.14 at today’s close after earlier falling to the lowest level since January 2009. It’s down 10 percent in 2012.