China’s Shanghai Composite Index will probably bottom out within days and begin to rebound, said Tom DeMark, the developer of market-timing indicators who predicted the measure’s rally from a four-year low in June.
The gauge may slip to as low as 1,952, or 4.4 percent below yesterday’s close, and then rally “sharply,” DeMark wrote in an e-mailed response to questions fromBloomberg News yesterday. The Shanghai Composite, which touched an intraday low of 1,984.82 on Jan. 20, has lost 3.5 percent this year.
The index “is in a bottom zone,” wrote DeMark, the founder of DeMark Analytics LLC in Scottsdale, Arizona, who has spent more than 40 years developing indicators to identify market turning points. “We have now turned constructive.”
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