Given numerous ETFs from across the risk/inflation-protection spectrum have daily 9-9 DeMark counts, we will most likely wait to see how those ETFs react after reaching 9-13 exhaustion signals. The 9-13s could start appearing as soon as Friday, but the vast majority could come as early as Tuesday (markets are closed Monday). Further downside is implied to reach the 9-13s from the 9-9 counts.
Exhaustion signals worked very well at the October 2011 low. As we have stated in the past, the Demark 9-13s can give us valuable information if they “work”, marking a bottom, or if they “don’t work”. If the market blows through the 9-13s in a bearish manner, it will tell us a strong downtrend has begun. Under those conditions, we would be willing to raise more cash. For now, our cash positions are high enough given the odds of a market reversal will increase relatively soon. DeMark Indicators are proprietary tools from Market Studies, LLC.