Charts suggest the market will bottom in the coming weeks

The charts suggest that the market will bottom in the coming weeks, followed by a rally

CNBC’s Jim Cramer said Tuesday that stocks could fall later this month, giving investors a chance to add to their portfolios.

“The charts, interpreted by Larry Williams, suggest that the bear market is more or less … toast, and even if the current rally stalls, he predicts a big move towards the end of this month or early November Cramer. said

Stocks gained on Tuesday after the August jobs report indicated the labor market is cooling, continuing the rally from the previous trading session.

Cramer said Williams wouldn’t be surprised if the current rally fizzles out, but he still believes there will be a significant fund toward the end of the month, followed by a rally until Election Day on Nov. 8.

“In other words, he thinks you should be ready for a fantastic buying opportunity even if the current move is repealed,” Cramer said.

To explain Williams’ analysis, he first looked at the S&P 500 futures chart, in black. The chart also has what Williams calls the true seasonal pattern, in blue.

The pattern is based on historical action at a certain point in the year, and Williams notes that the market tends to bottom out in mid-to-late October and then lead to a “powerful” rally, Cramer said.

He then looked at a chart of the Dow Jones Industrial Average with the same actual seasonal pattern.

The Dow also has a double bottom followed by a rally at the same time as the S&P 500, meaning there should be a huge buying opportunity, he said.

For more analysis, watch Cramer’s full explanation below.

Watch Jim Cramer break down Larry Williams' new chart analysis

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *