Charts suggest the market will bottom in the coming weeks followed by a ‘powerful’ rally, Jim Cramer says

Charts suggest the market will bottom in the coming weeks followed by a ‘powerful’ rally, Jim Cramer says


Charts suggest the market will bottom in the coming weeks followed by a 'powerful' rally, Jim Cramer says

CNBC’s Jim Cramer said on Tuesday that stocks could bottom later this month and present investors with an opportunity to add to their portfolios.

“The charts, as interpreted by Larry Williams, suggest that the bear market is more or less … toast and, even if the current rally stalls, he’s predicting a big move either toward the end of this month or the beginning of November,” Cramer said.

related investing news

The stock market may look oversold, but it can fall even further, technical strategists say

CNBC Pro
The stock market may look oversold, but it can fall even further, technical strategists say

Stocks gained on Tuesday following the August job openings report that indicated that the labor market is cooling, continuing the rally from the prior trading session.

Cramer said that Williams wouldn’t be surprised if the current rally fizzles out, but he still believes there’ll be a meaningful bottom near the end of the month, followed by a rally through Election Day on Nov. 8. 

“In other words, he thinks you should be prepared for a terrific buying opportunity, even if the current move gets repealed,” Cramer said.

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

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

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

The Dow also happens to have a double bottom followed by a rally around the same time the S&P 500 does, which means there should be a tremendous buying opportunity, he said.

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

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

Business class+? Delta says segmentation is coming to high-end cabins
Business

Business class+? Delta says segmentation is coming to high-end cabins

Nurphoto | Nurphoto | Getty Images Delta Air Lines is studying new types of airplane tickets — this time in the premium cabins at the front of the plane. Airlines spent years slicing up their coach cabins, from extra legroom seats to bare-bones basic economy fares that don’t allow changes or include a seat assignment. […]

Read More
Trump’s tariffs on Brazil could make your coffee even more expensive
Business

Trump’s tariffs on Brazil could make your coffee even more expensive

President Donald Trump’s proposed 50% tariff on Brazilian imports is bad news for coffee drinkers. Brazil, the largest U.S. supplier of green coffee beans, accounts for about a third of the country’s total supply, according to data from the U.S. Department of Agriculture. Coffee beans need to grow in a warm, tropical climate, making Hawaii […]

Read More
Space startup Varda raises 7 million in funding to make drugs in orbit
Business

Space startup Varda raises $187 million in funding to make drugs in orbit

Pavlo Gonchar | Lightrocket | Getty Images Space startup Varda announced on Thursday that it has raised $187 million in Series C funding, led by venture capital firms Natural Capital and Shrug Capital, to continue advancing drug manufacturing in space. The latest round included participation from Peter Thiel, Lux Capital, Khosla Ventures and Caffeinated Capital. […]

Read More