The Nifty hit a level yesterday that signaled gains are “exhausted,” DeMark said in an interview, citing his Combo indicator. The index may increase about 3 percent in coming days, before reversing course to post an 11 percent retreat, DeMark said.
“We may have a slightly higher high in the Nifty, but we’re almost there,” said DeMark, the founder of DeMark Analytics LLC in Scottsdale, Arizona, who has spent more than 40 years developing market-timing indicators. “What you want to see is good news at the top, which is what we’re seeing right now, where there’s a lot of ignoring of negative news.”