- CNBC’s Jim Cramer on Monday said that the market could see a rally later this year that lasts through the end of 2022.
- “The charts, as interpreted by Larry Williams, were able to call this incredible October rally. … And now he says that this market’s likely got even more upside even through the end of the year,” Cramer said.
CNBC’s Jim Cramer on Monday said that the market could see a rally later this year that lasts through the end of 2022.
“The charts, as interpreted by Larry Williams, were able to call this incredible October rally. … And now he says that this market’s likely got even more upside even through the end of the year,” Cramer said.
Stocks fell on Monday but saw a major comeback in October. The Dow Jones Industrial Average gained 13.95% in its best month since 1976. The S&P 500 and Nasdaq Composite increased about 8% and 3.9%, respectively, in October.
To explain Williams’ analysis, Cramer first examined the chart of the Dow Jones Industrial Average futures in black, and Williams’ true seasonal pattern in blue.
This chart is an updated version of what Williams used earlier this month when accurately predicting October’s rally, and suggests there could be a tremendous rally, according to Cramer.
“That true seasonal pattern is based on the historical pattern at any given point in the year, and it predicted a monster run through mid-November. And it suggests we’ve got another leg higher through the end of the year,” he said, adding that there will be a pause between the rallies.
He then examined a chart that shows the action in the Dow through last week, along with Williams’ long-term cycle forecast in red.
The cycle forecast confirms the bullish previous seasonal forecast in the previous chart, according to Cramer.
“Bulls be prepared, bears beware,” he said.
For more analysis, watch Cramer’s full explanation below.
Source: Business - cnbc.com
