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July 18, 2020, 12:19 p.m. EDT

CNBC’s Jim Cramer uses this chart to predict the exact date the stock market could hit the skids

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By Shawn Langlois, MarketWatch


Getty
CNBC's Jim Cramer

Bulls, enjoy the next couple of weeks.

Why? Well, according to “renowned trading expert” Larry Williams and his reading of this chart, the end of the month could also mean the end of the rally.


CNBC

Williams focuses on seasonal patterns of the market to chart his course, noting that July tends to be a bullish month for stocks. So far, it’s living up to its historical billing.

CNBC’s Jim Cramer highlighted the chart during his “Mad Money” show on Tuesday.

“The charts, as interpreted by the legendary Larry Williams, suggest the S&P could climb another 4% or 5% over the next two weeks, but come July 28, he expects the market to start rolling over,” he said. “Given that the expanded unemployment insurance benefits from Washington expire at the end of the month, well, I wouldn’t be surprised” if his call turns out to be correct.

For more on the chart, check out this clip:

Cramer didn’t offer much insight as to how bad the pullback will sting investors if or when it hits at the end of the month, other than to say, “it’s probably too soon to tell, but [Williams] does suspect the rollover will hurt, because too many people” are too long on equities.

Not much pain in Wednesday’s market, with the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.12%  , S&P 500 /zigman2/quotes/210599714/realtime SPX +0.56% and Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +0.22% all logging gains.

/zigman2/quotes/210598065/realtime
US : Dow Jones Global
29,591.27
+327.79 +1.12%
Volume: 389.02M
Nov. 23, 2020 5:02p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,577.59
+20.05 +0.56%
Volume: 2.51B
Nov. 23, 2020 5:02p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
11,880.63
+25.66 +0.22%
Volume: 5.03M
Nov. 23, 2020 5:16p
loading...

Shawn Langlois is an editor and writer for MarketWatch in Los Angeles. Follow him on Twitter @slangwise.

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