Major Wall Street indices closed in the red on Monday as investor optimism on the much anticipated “Santa Claus” rally began to fade over fears of recession gaining momentum.
Prominent market commentator Jim Cramer has cited a chart interpreted by Larry Williams and said there could be a possible opportunity for buying stocks and that Christmas is not going to be canceled for Wall Street, according to a CNBC report.
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“The charts, as interpreted by Larry Williams, suggest that Christmas is not going to be canceled for Wall Street — he thinks we still have a Santa Claus rally coming, and the ideal time to buy is sometime around this Thursday,” he said.
Monday’s fall was the fourth consecutive negative session for Wall Street. The Dow Jones index closed 0.49% lower while the S&P 500 ended Monday’s session 0.9% down. The Nasdaq was the major loser, having shed 1.49% by the end of the day. The SPDR S&P 500 ETF Trust SPY closed 0.85% lower while the Vanguard Total Bond Market Index Fund ETF BND shed 0.6%.
Cramer stated the market’s recent downturn is the perfect setup for a “Santa Claus” rally. For Williams, it’s a matter of when, not if stocks will rise, Cramer said, according to the report.
Larry Williams’ analysis of the daily chart of the S&P 500 futures from November 2021 to January 2022 — courtesy: CNBC
Chart Analysis: Cramer first interpreted the daily chart of the S&P 500 futures from November 2021 to January 2022. In the chart, the blue line shows Williams’ seasonal forecast and indicates the best buying opportunities arrive in mid-to-late December, with the “Santa Claus” rally tending to last through January 10.
Daily chart of the S&P futures from September of this year until now — courtesy: CNBC
Cramer then compared these findings to the daily chart of the S&P futures from September of this year until now and noted that according to the chart, the market just entered the “seasonal sweet spot. Cramer observed that Thursday’s trading session would be the ideal moment to buy ahead of a potential rally, according to Williams.
“I know it’s hard to believe that the market’s ready to run, but that’s how it always is with Larry’s calls. Although it’s possible this year will be different, historically, betting against him has been a real bad strategy,” he said according to the report.
Image and article originally from www.benzinga.com. Read the original article here.