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 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.”