Analyst Warns Of Looming Bear Market Despite Recent Rebound

U.S. stocks may be headed for a deeper drop that could trigger a bear market in the coming months, according to veteran market technician Tom DeMark, Bloomberg News reported.

Despite surface stability, the underlying technicals remain weak, suggesting another sharp decline is likely soon.

DeMark, who accurately predicted both the February market peak and April bottom, uses a proprietary system that analyzes trend exhaustion through mathematical models.

His view: markets typically bottom on bad news, not good, and that moment hasn’t arrived yet.

“Last month’s rally was technical, not fundamental,” DeMark said.

“Stocks were simply oversold. Now, they’re vulnerable again.” DeMark warned that despite surface stability, the underlying technicals remain weak, suggesting another sharp decline is likely soon.