Charts suggest this week could be a ‘key moment’ for S&P 500

CNBC’s Jim Cramer said Tuesday that there may be a “significant moment” for investors to buy some on the S & P 500 this week, based on an analysis by Decary Trading market strategist Carley Garner.

Garner believes there is a “moderate potential” for rebounds later this week, but a more likely scenario shows some stability around where the S & P 500 is currently trading. Or you can see the breakdown of 3,500.Flirt“The host said.

“But at that point, she wants you to be a buyer, not a seller, because after all, the bear runs out of firepower and some of the bystander’s money returns to the market,” he added. .. “This is a bullish scenario, people.”

S & P500 slide Deep in the area of ​​the bear market It fell on Tuesday on the 5th day. The Dow Jones Industrial Average fell slightly, but the Nasdaq Composite index rose slightly.

“Even if the present is terrible, the average does not reflect the present, so if the fundamentals are the worst, the stock price tends to bottom out. Kramer said.

To begin explaining Garner’s analysis, Kramer looked at the daily chart of the S & P500 June Futures Contract.

According to Kramer, Garner believes the S & P 500 may have been oversold and ready to bounce.

The Relative Strength Index at the bottom of the chart, which is an indicator of important momentum, is close to 30. This indicates that the price is oversold. The seller is starting to get tired, coupled with the fact that the RSI and S & P 500 are diverging, Cramer said.

Garner also recently Miserable Consumer Emotion Index According to Cramer, students at the University of Michigan suggest that the S & P 500 has bottomed out.

If the S & P 500 has achieved a “miracle” recovery of over 4,030, that is, a critical floor of support that is about 300 points above the current level, the current decline is a “bare trap” that raises the S & P to about 4,400. May be written in chalk. But without recovery, the index could plummet to the next floor with support of around 3,550, Cramer said.

“But this is very big, but she thinks it’s a buying opportunity if it falls in the 3,500s. Of course, she could be wrong,” Kramer said.

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