Analyst Predicts Imminent Bear Market Despite Recent Rally

Veteran technical strategist Tom DeMark has warned that U.S. stocks are poised for another sharp drop, despite the recent rally, Bloomberg News reported.

The forecast suggests a potentially debilitating bear market could take shape in the coming months as technical weakness undermines recent gains.

DeMark, known for accurately predicting key market moves, said that equities have not yet experienced the kind of capitulation that typically marks a true market bottom.

“Markets top on good news and bottom on bad news,” DeMark said. “That hasn’t happened yet. What we saw last month was just an oversold bounce.”

His forecast suggests a potentially debilitating bear market could take shape in the coming months as technical weakness undermines recent gains.