BI : TOM DEMARK: The stock market will bottom in the next 2 or 3 days


Tom DeMark thinks that we could be nearing a bottom in the stock market.

In an interview with Bloomberg TV on Thursday, he said that he's looking for one in the S&P 500 over the next couple of days.

DeMark is the founder and CEO of DeMark Analytics. DeMark's indicators are used in the market timing and technical analysis of financial markets.

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."

"For the S&P and the Dow, we are going to undercut, in our feeling, the low we made in January as well as the low we made," on Thursday, DeMark said.

The S&P 500's intraday low was around 1,810.

"But we do have one caveat here," DeMark added. "In hectic market, in a market that is going to possibly be attacked with negative news, we could go as low as 1,746 on the [S&P 500] intraday, but still struggle and come back above 1,792 and make a low."

Said another way, stocks could fall about 5% from current levels.

And of course Thursday gave us a perfect example of how sensitive markets are to news when reports — which initially came in the form of a tweet — indicated that OPEC could be open to discussing an oil-production cut.

As for what the — slightly — longer-term future holds, DeMark thinks crude oil could bottom as soon as Friday or Monday while bonds, which rally when yields drop, could top out over the same period.

Gold, DeMark thinks, will probably "go off on its own."

>>> Fed's Dudley (Voter, Dove): turmoil in market mostly tied to overseas events

Fed's Dudley (Voter, Dove): turmoil in market mostly tied to overseas events and not US economy - Q&A 
- if financial conditions tighten, Fed takes that into account
- difficult to tell how much market turmoil recently is based on market fundamentals
- still expects to meet inflation target in the longer term but it will be slow going
- seen dollar weaken a bit in recent weeks 
- completely agrees wtih Chairwoman Yellen's assessment of policy environment
- won't commit on rate decisions because data could change before March meeting; recent events will factor into March decision

>>> Fed's Dudley (Voter, Dove): Fed is limited to its ability to resist shocks,

Fed's Dudley (Voter, Dove): Fed is limited to its ability to resist shocks, unlikely that a significant inflation risk is threatening the US expansion 
- A large external shock is now the main risk to the "advancing age" of the US economic expansion. Expansions "don't die of old age"
- Economic expansions usually end when inflation forces the Fed to tighten rates. Below-target inflation lets the Fed avoid tighter policy.
- Key parts of the US economy seem to be in good shape, overall the economy is more resilient to shocks
- Household sector is strong and will help drive more growth, household debt is much healthier than in the past
- Entirely appropriate that Fed policy is still quite accommodative

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: NUS -24.7%, SCSS -17.7%, CYBR -10.6%, ZG -9.7%, ALNY -8.7%,AMKR -7.5%, QLIK -7.3%, Z -6.6%, ATVI -5.9%, EGN -2.7%, (discontinues dividend), IPGP -2%, DVA -1.7%, ( pharmacy services provider and subsidiary DaVita Rx receives Civil Investigative Demand from the U.S. Attorney's Office ), CBS -1.3%,POR -1.3%, LOGM -1.2%, SSNC -1.1%


Select metals/mining stocks trading lower: GFI -4.4%, HMY -3.6%, EGO -2.3%, GG -1.5%, GDX -1.4%, AUY -1.1%,NEM -0.6%, ABX -0.6%, .


Other news: TRXC -4.4% ( files ~42.759 mln share common stock shelf offering by selling investors), HLF -3% (in symp with NUS), DCM -2.4% (Nikkei down 4.8% overnight), TM -2.1% (Nikkei down 4.8% overnight)

Analyst comments: AEGR -1.1% (downgraded to Underperform from Neutral at BofA/Merrill)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: GRPN +20.1%, AXL +17.4%, COLM+10.3%, ROVI +9.6%, BCOV +8.8%, QUOT +8.3%, MGI +7.4%, ELLI +7.1%,USAT +7.1%, NBIX +5.3%, WYNN +3.8%, BAM +3.5%, IPG +3.1%, CRAY+2.7%, P +2.3%, AIG +1.8%, WEB +1.6%, WEB +1.6%, (o acquire Yodle for $300 at close and $42 mln in future considerations; over $30 mln of projected synergies ), FEYE +1.5%, BSQR +1%

M&A news: BIDU +4.6% (receives non-binding proposal proposing to acquire all of the outstanding shares of Qiyi), AMZN +1.1% (Amazon's Amazon Web Services has acquired NICE Software)

Select financial related names showing strength: DB +9.7%, CS +4.3%,PUK +4%, RBS +3.6%, BCS +3.6%, MS +2.4%, BAC +2.3%, HSBC +2.1%, C+2.1%, GS +1.8%

Select oil/gas related names showing strength: CHK +6.2%, ETE +4.3%,SDRL +3.7%, RIG +2.2%, RDS.A +2.2%, MRO +2%, TOT +2%, COP +1.9%

Other news: SQ +16.9% (Visa (V) discloses 9.99% passive stake), TTM+6.1% (rebounding following yesterday's decline), IMMR +5.9% (files a complaint with the U.S. International Trade Commission against Apple (AAPL), AT&T (T), and AT&T Mobility LLC), SUNE +4.4% (rebounding following yesterday's decline), JPM +3.6% (CEO Jamie Dimon purchased 500K shares), UPL +2.5% (following new all-time lows made yesterday),TSLA +2.5% (cont strength), SHPG +2.2% (rebounding following yesterday's decline), F +1.3% (reports January European sales metrics), FB +1.1% (likely trading higher with the futures), RTIX +1% ( announces a new agreement with Oxford Performance Materials that grants co an exclusive license to OPM's OsteoFab technology platform for spinal applications in all U.S. markets)

Analyst comments: KR +1.3% (initiated with a Buy at Stifel)

>>> Greek gov't official: Refutes IMF Blog post that called for greater pension

Greek gov't official: Refutes IMF Blog post that called for greater pension reforms and highlighted lack of progress with tax evasion Such difficult decisions cannot be kicked down the road through unrealistic assumptions. While there is much scope for increasing productivity through reforms, the past six years have shown that the scope and pace of reforms acceptable to the Greek society is not commensurate with an early improvement of productivity and sustained high growth. Thus, assuming that Greece can simply grow out of its debt problem without debt reliefby rapidly transitioning from the lowest to the highest productivity growth within the euro zoneis not credible. Similarly, the very limited success in combating Greeces notorious tax evasionto make the well-off pay their fair sharemeans that pension reforms cannot be avoided by simply assuming higher tax collections in the future.

>>> US Early premarket gappers

Early premarket gappers

Gapping up: GRPN +22.8%, ROVI +9.6%, BCOV +8.8%, DB +8.1%, COLM +8%, RIO +7.4%, IMMR +7.3%, ELLI+7.1%, BBL +7%, TTM +7%, ETE +6.9%, QUOT +6.4%, VALE +6.3%, BHP +5.7%, FCX +5.5%, NBIX +5.3%, CHK+5.1%, CS +5%, RBS +4.6%, BCS +4.2%, MRO +4.1%, PUK +4%, SDRL +3.7%, JPM +3.5%, COP +3.5%, KMI +3.5%,MS +3.5%, RIG +3%, MT +3%, BAC +3%, SUNE +2.9%, BP +2.8%, ARMH +2.7%, CRAY +2.7%, HSBC +2.6%, UPL+2.5%, SHPG +2.5%, X +2.5%, SAN +2.4%, C +2.3%, TOT +2.3%, TSLA +2.3%, RDS.A +2.2%, GS +2%, ITT +1.9%,WEB +1.6%, WEB +1.6%, F +1.4%, WYNN +1.4%, FB +1.1%, RTIX +1%, BSQR +1%

Gapping down: NUS -20.6%, SCSS -17.4%, ATVI -12.2%, ZG -9.7%, CYBR -9.1%, LOGM -7.9%, AMKR -7.5%, QLIK-7.3%, Z -6.6%, TRXC -6.1%, P -5.7%, HMY -4.4%, GFI -3.3%, FMS -2.9%, ALNY -2.6%, TM -2.1%, GG -1.9%, DVA-1.7%, GDX -1.6%, CBS -1.3%, NEM -1.2%, AUY -1.1%, SSNC -1.1%, MYL -1%, EGO -1%, ABX -0.9%, IAG -0.9%, SLW-0.9%, EGN -0.7%