CNBC’s Jim Cramer said on Wednesday that markets’ recent gains could turn into a sustained rally.
“The charts interpreted by Larry Williams indicate that the market could have a very good run over the next few months,” he said.
Stocks rose on Wednesday, continuing a strong start to the year as investors grew confident the Federal Reserve is winning its battle against inflation. All three major indices closed, with the Nasdaq Composite posting its fourth day of gains.
To explain Williams’ analysis, Cramer examined the daily chart of the S&P 500 from late 2021 to early 2022.
Cramer said that according to Williams, every major rally in that period lasted 24 days. He added that this pattern will continue in the second half of 2022 with 24-day rallies in July, August and from mid-October to mid-November.
This week marked a fresh rally and should last through Feb. 3 if the pattern holds — or even beyond that date, Cramer said.
“Williams believes we are in the early, choppy stages of a bull market. For him, most of the bad news has already been burned in over the past year, which sets us up for better times in 2023,” he said.
For more analysis, see Cramer’s full statement below.
https://www.cnbc.com/2023/01/11/charts-suggest-the-market-could-rally-for-the-next-couple-months-jim-cramer-says.html The charts suggest the market could rally over the next few months, says Jim Cramer