Failed To Get S&P Exhaustion Signal on Tuesday
DeMark indicators look for price exhaustion, which speaks to a market that runs out of interested buyers. Based on the way the signals are generated, a market must exhibit some respectable price strength to establish “exhaustion”. The fact that DeMark counts have been slow to develop over the past six weeks is indicative of a weak and tentative advance in stocks.
Once again, we failed to hold the levels needed on Tuesday to generate an exhaustion signal on the daily chart of the S&P 500 Index. For the signal to occur today, we need (1) an intraday high greater than 1,303, and (2) a close greater than 1,295.50. Once we get the signal, there are some things to look for in the following days which increase the odds of a reversal.
