Charts suggest the market is in for a ‘bumpy ride,’ Jim Cramer says

1 min


167
106 shares, 167 points

CNBC’s Jim Cramer on Tuesday warned investors that the market’s volatility will likely continue as its recent run loses steam.

“The charts, as interpreted by Jessica Inskip, suggest that the broader market might be in for a bumpy ride as we exit bear market rally mode,” he said.

Stocks fell on Tuesday, continuing the previous session’s losses on worries the Federal Reserve will tip the economy into a recession next year, despite Chair Jerome Powell’s comments last week that the bank could start slowing down its pace of interest rate hikes this month.

Cramer said that Inskip, who predicted last month that the market’s recent run could last through mid-December, sees signs of trouble. To explain her analysis, he examined the daily chart of the S&P 500.

Inskip believes the market’s gains from mid-October through the end of last week was a bear market rally — in other words, a temporary bounce in a larger downward trend, he said.

He also reminded investors that the market is at the mercy of the Fed’s interest rate increases, and the central bank’s inflation strategy is beholden to the labor market.

When November’s hotter-than-expected labor report was released on Dec. 2, the S&P failed to jump two key ceilings of resistance.

“Inskip thinks we went right back into bear market mode,” Cramer said. “The S&P can still escape from this new trajectory, but she won’t have much confidence in a bounce unless we blow through last Friday’s levels.”

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

Watch Jim Cramer break down fresh charts analysis from OptionsPlay's Jessica Inskip

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: CNBC


Like it? Share with your friends!

167
106 shares, 167 points

What's Your Reaction?

Cute Cute
5
Cute
Fun Fun
24
Fun
Hate Hate
18
Hate
Confused Confused
8
Confused
Fail Fail
26
Fail
Geeky Geeky
21
Geeky
Love Love
13
Love
OMG OMG
8
OMG
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format