Jim Cramer says 3 factors foreshadowed Thursday’s market comeback

Jim Cramer says 3 factors foreshadowed Thursday’s market comeback


Jim Cramer says 3 factors foreshadowed Thursday's market comeback

CNBC’s Jim Cramer on Thursday said that there were three indicators during Thursday’s trading session that suggested the initial market sell-off would fizzle out.

Stocks made a stunning reversal on Thursday after the market fought off a hotter-than-expected consumer price index report to snap a six-day losing streak. 

The Dow rebounded over 1,300 points after the volatile trading sessions’ early-morning declines, while the S&P 500 saw its widest trading range since March 2020.

“We have to remember there are always people who want to get out, but there are also people who want to get in at the right price, or never sell at all,” Cramer said.

Here are the three signals he spotted that suggested the market would bounce:

  1. The S&P 500 Short Range Oscillator, Cramer’s favorite market indicator, came in at a little more than minus 5%, which means a big sell-off likely wouldn’t have much staying power. Anything above plus 4% indicates the market is overbought, while anything below minus 5% indicates the market is oversold.
  2. The CBOE Volatility Index — which is also known as the VIX, Wall Street’s fear gauge — didn’t spike when the market initially fell. That means traders weren’t spooked and is usually a sign the market is dealing with a “misdirection play,” according to Cramer. 
  3. Most importantly, the market didn’t go lower than where the futures took it, he said. This means that there was no follow-through with the sell-off.

In other words, Thursday’s sell-off had no staying power because the investors who chose to sell off their portfolios after seeing the inflation data underestimated the bulls’ resilience, according to Cramer.

“The people who are still left in this miserable, horrible, no-good market aren’t going to dump stocks over something they already knew — that the consumer price index is too hot. I mean, no kidding,” he said.

Jim Cramer gives his take on Thursday's market rally

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

Cracker Barrel shares rise after restaurant chain gets rid of controversial new logo
Business

Cracker Barrel shares rise after restaurant chain gets rid of controversial new logo

A Cracker Barrel sign featuring the old logo is seen outside of a restaurant on August 21, 2025 in Homestead, Florida. Joe Raedle | Getty Images Shares of Cracker Barrel Old Country Store rose 3% Wednesday after the restaurant chain said it would scrap its new logo and return to the original one, amid mounting […]

Read More
Abercrombie sales growth slows again, but Hollister surges 19%
Business

Abercrombie sales growth slows again, but Hollister surges 19%

Abercrombie & Fitch sales growth slowed again in its fiscal second quarter as the apparel company struggles to top the surge it enjoyed last fiscal year. During the quarter, sales at the namesake Abercrombie brand fell 5% while comparable sales dropped 11%.  But the success of teen-focused Hollister brand helped to salvage the quarter. Overall, […]

Read More
Kohl’s shares jump more than 15% after big earnings beat
Business

Kohl’s shares jump more than 15% after big earnings beat

A sign is displayed above a Kohl’s store in Chicago on March 1, 2023. Scott Olson | Getty Images Kohl’s shares climbed more than 15% on Wednesday after the retailer topped Wall Street’s second-quarter earnings and revenue expectations, even as its sales declined and it looks for a new CEO. The Wisconsin-based department store narrowed […]

Read More