TOM DEMARK WARNS: Chinese stocks are following the path of the Dow in 1929
While China’s stock market suffered one of the largest declines on record yesterday, we ain’t seen nothing yet, according to the man who predicted the low point for the Shanghai Composite index in 2013.Tom DeMark, founder Arizona-based DeMark Analytics, believes there’s significant carnage still to come.
He’s predicting China’s stock market will decline by an additional 14% over the next three weeks as the market demonstrates a trading pattern that mimics that of the 1929 US crash, according to a report from Bloomberg.
DeMark suggests the benchmark Shanghai Composite index will sink to 3,200 points in the weeks ahead, extending the decline from the June 12 peak to 38%.
DJIA up to October 16,1929, Courtesy of Worden Bros |
Current Shanghia 2015 chart, Courtesy of Worden Bros |
DJIA 1929 chart, Courtesy of Worden Bros |
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