CNBC's Jim Cramer explained technical analysis from veteran chartist Larry Williams that suggests the market's recent rebound could last for the next few months.
The week before last, Larry Williams called the bottom. We have a lot more room to run according to his analysis. The host of Mad Money thinks that this could be a move that lasts through the end of August.
The S&P 500 and the Dow Jones Industrial Average had their best weekly gains since November 2020, though the three major indices are well below their highs.
Cramer looked at the monthly chart of the S&P 500 going back to 2008.
Cramer says the vertical red lines show moments where the index advanced. There have been six instances of a buying opportunity since 2008.
If history is any guide, this kind of swift rebound should be a major inflection point for the stock market. He thinks last week's rally may be the beginning.
Cramer said that Williams prediction that the market's rally will last is supported by a 12-year cycle he's noticed for rebound in the DOW.
The chart is here.
The last time this cycle predicted a major move off the bottom was in 2010 and it was an excellent time to buy. We had a monster move last week, Cramer said, adding that Williams sees a bullish sign.
The market is due for a rally through Sept. 1, according to Cramer.
The host said that he thinks it will be a nice summer.
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