DeMark Says Sell the News

While the news of the Chinese Yuan revaluation has goosed the futures and foreign markets, the DeMark indicators say the market is due for a rest. 

DeMark Sequential registered a 13 and 9 within consecutive days on the QQQQ, which is usually a good signal for a reversal.  The fact that the market blew right threw the signal is a testament to the market’s strength.  However, sometimes a delay effect occurs with the DeMark Sequential signals in very strong markets.

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Chart Courtesy Bloomberg

The DeMark Sequential on the S&P Futures hit a 9 on Tuesday and will hit most likely hit a 13 tomorrow.

Sp1_seq_072105

Chart Courtesy Bloomberg

Finally, the German DAX has hit a DeMark Sequential 9 today as well as showing a shooting star candel.  In other words, the Germans have already begun selling on the news. 

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