In an interview with Bloomberg TV on Thursday, he said that he's looking for a bottom in the S&P 500 over the next couple of days.
DeMark told Bloomberg that he expects we'll find a bottom at 1,792 for S&P 500 futures and 1,797 for the index.
The S&P closed at 1,829 on Thursday. He is a legendary market technician known for making big and specific market-timing calls.
First, however, DeMark thinks that stocks are going to head lower and that this final dive will probably happen "in the next two or three days."
This market is totally irrational pricing in a recession for some reason. Good stocks were getting killed on rumors of things that would never happen. Does anyone really think the Fed would be okay with negative rates when they are doing everything they can to raise them? The banks got killed on that mis-information.
Also high-growth stocks all got nailed because Tableau missed their numbers?
To recap: shares went from $81.75 with analysts predicting target prices of $100 and above, to below $40 on Tuesday, with average analyst targets of $74.
For instance, Morgan Stanley analysts who had been bullish on Tableau did a complete about-face. They downgraded the stock from overweight to equal-weight and slashed their target price from $125 to $55.
All this because Tableau lowered its earnings expectations to $830 million to $850 million from its previous guidance of $845 million to $865 million.
The problem is that it seems to be Tableau's (DATA) problem and not the entire industry.
He suggest that Tableau is facing more competition (driving down prices), internal sales issues and, perhaps the fact that some companies are focused more on moving their IT to the cloud than they are in ramping up their big data projects.
So these companies are using their IT spend to buy something else instead of big data projects. Big data always seemed like the kind of project that you would launch if you had cash left over. However, taking your infrastructure to the cloud or cyber-security is something you have to buy (and pay maintenance year after year) no matter what. Hopefully, this irrationality will bleed out of the market next week.