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Charts suggest the market could rally for the next couple of months, Jim Cramer says

Charts suggest the market could rally for the next couple of months, Jim Cramer says

CNBC’s Jim Cramer on Wednesday said that the markets’ recent gains could become a sustained rally.

“The charts, as interpreted by Larry Williams … suggest that the market could have a very nice run over the next couple of months,” he said.

Stocks rose on Wednesday, continuing the year’s strong start as investors grew confident that the Federal Reserve is winning its battle against inflation. All three major indexes closed up, with the Nasdaq Composite notching 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 every major rally during this period lasted for 24 days, according to Williams. He added that this pattern continued during the second half of 2022, with 24-day rallies in July, August and from mid-October to mid-November.

This week marked a new rally and should continue until February 3 if the pattern holds — or even past that date, Cramer said.

“Williams thinks we’re in the early, choppy phases of a bull market. To him, most of the bad news already got baked in last year, which sets us up for a better time in 2023,” he said.

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

Jim Cramer breaks down fresh charts analysis from Larry Williams

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[souce cnbc]

Written by Susan Bellini