Charts suggest the S&P 500 is at a make-or-break moment, Jim Cramer says

Charts suggest the S&P 500 is at a make-or-break moment, Jim Cramer says


CNBC’s Jim Cramer on Wednesday said that the benchmark S&P 500 is at a crossroads, poised to either tumble further or roar higher.

“The charts, as interpreted by Jessica Inskip, suggest that we’re all at a very important moment where the S&P 500 found an equilibrium between the floor of support and a ceiling of resistance. At this point, something has to give,” he said.

Stocks tumbled on Wednesday after fresh December retail sales data renewed fears of a recession. Investors also took profits on gains from earlier this month, spurred by soft economic data that suggested the Federal Reserve is winning its fight against inflation.

The S&P 500 fell to its lowest level in about a month, while the Nasdaq broke a seven-day streak of gains.

To explain the analysis from Inskip, who is the director of product and education at OptionsPlay, Cramer examined the daily chart of the S&P 500 dating back to November 2021.

The chart shows that earnings season is often a time of volatility marked by strong rallies and declines. It also shows that the S&P 500 has been on a downtrend for over a year, with the downtrend line acting as a ceiling of resistance for the market since the Federal Reserve began its battle against inflation in November 2021, according to Cramer.

Inskip notes that the ceiling has never been breached even after powerful rallies from the last two earnings cycles, he added.

But while the past two earnings seasons started with the index at levels close to the low end of its trading end, the current fourth-quarter earnings season saw the S&P 500 start right below the ceiling, Cramer said.

“Good [earnings] numbers could give us more upside than we’ve seen from the last few quarters, but bad ones might mean the S&P heads right back down to the low end of the range,” 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

Here are the retailers raising prices as Trump tariffs take hold
Business

Here are the retailers raising prices as Trump tariffs take hold

A person picks out clothing in a store as retailers compete to attract shoppers and try to maintain margins on Black Friday, one of the busiest shopping days of the year, at Woodbury Common Premium Outlets in Central Valley, New York, U.S. November 24, 2023.  Vincent Alban | Reuters Consumers who hoped tariffs would not […]

Read More
This is why Jamie Dimon is so gloomy on the economy
Business

This is why Jamie Dimon is so gloomy on the economy

Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled Annual Oversight of Wall Street Firms, in the Hart Building on Dec. 6, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images The more Jamie Dimon worries, the better his bank seems to do. As JPMorgan […]

Read More
Summer rentals in the Hamptons are down 30%
Business

Summer rentals in the Hamptons are down 30%

Key Points Summer rentals in the Hamptons are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals are seeing an even bigger drop and say their rental business is down between 50% and 75%. Some renters may be holding out […]

Read More