The charts suggest a “very nice summer” for stocks

CNBC’s Jim Cramer explained the technical analysis of veteran cartelist Larry Williams, which suggests that the latest rebound in the market could last for months to come.

“Larry Williams called it the bottom line last week. Now his analysis suggests we have more room to run. He thinks this is not just a short-term bounce, but a move that could last until the end of August,” he said. “hosts.

The Dow Jones Industrial Average and the S&P 500 had their best weekly gains since November 2020, although the top three indices, including the Nasdaq Composite, are below their highs.

To explain Williams’ analysis, Cramer analyzed the monthly chart for the 2008 S&P 500:

Vertical red lines indicate 95% of the index’s momentum, according to Crame. He noted that there had been six cases since 2008 last week, with the option to purchase each instance.

“If there is any guide to history, this quick bounce should be an important turning point for our battered stock market,” he said. “According to Williams, we are dealing with a very bullish situation here. He believes that last week’s huge rally could be the beginning, not the end.”

Williams’ prediction is that the market rally will last a 12-year cycle, Cramer said.

Here is the table:

“The last time this 12-year cycle announced a big move from the bottom was in 2010, and it was a great time to buy that. Now 12 years later … we had a monster movement last week,” Cramer said. , Williams added that he sees a “very bullish signal”.

Williams noticed another pattern – this is a major 75-day cycle in the Dow – which shows that the market will be rallying until September 1, according to Crame.

“In short, he thinks it’s going to be a very nice summer,” the host said.

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The charts suggest a “very nice summer” for stocks

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