Technical Views From Louise Yamada and Tom DeMark (8/16/2011)

Source: Flickr
Technical Analysis: Louise Yamada, founder of Louise Yamada Technical Research Advisors, believes a new cyclical bear market has been confirmed. Watch her three interviews on Breakout (Yahoo Finance).
  1. Market in Death Cross Mode: Stay on the Sidelines
  2. It’s a Technical Mess All Over the World: Yamada
  3. Gold, Oil & the Dollar: Correlation Breakdown Is Concerning
"We've finished the bull market, the cyclical bull, and we're in a new cyclical bear. Most of the global markets are down 20% or more. The New York Stock Exchange, the Russell 2000 are already at the bear market 20% threshold. And having in place our three momentum sell signals on a monthly basis for most of the markets except the U.S. at this point, suggests that we're in a cyclical bear market."

Tom DeMark, founder of Market Studies, thinks the S&P makes a new low during this sell-off and then breaks above the April high. Overall though DeMark said the "trend is down." Peter Lee, Chief Technical Analyst at UBS, also sees one more high in the S&P before it completes its cyclical bull run. Interesting.

DeMark Says Stock Rally May Begin in Weeks, Europe Banks 'Buys' (SFGate/Bloomberg)

"We're at the point right now where the next trip down will probably generate a buy signal," said DeMark, founder of Market Studies LLC. "Everything we follow is indicating the Dow Jones and the S&P should make a minor new recovery high, and probably the Nasdaq, too." (read article at SF Gate)