Charts recommend stock exchange must move higher in late October

The typically weak month of September measured up to its credibility this year, however historic analysis of market patterns reveals that much better days might be coming.

Jim Cramer provided the analysis of veteran chart expert Larry Williams on Friday’s edition of “Mad Money.” Williams called the bottom in March 2020 and the depression for the marketplace inSeptember

“The business is a what-have-you-done-for-me-lately business. It’s truly unforgiving. And lately Williams has had a truly stunning track record, so we keep going back to him,” Cramer stated.

Cramer mentions that Williams’ chart forecast from the start of the year is strangely comparable to how the 2021 market has actually played out.

“For the most part, Williams has been dead right,” Cramer stated.

Cramer stated he is not constantly a fan of technical analysis, however it is necessary to consider it when making financial investment choices.

And Williams’ work reveals that a person of the very best purchasing chances of the year is simply a couple of weeks away.

“Williams points out that, just going by the calendar for nearly a century, stocks have started to rally around 0ct. 29. It doesn’t always happen, but on average the period from late October … through late December is typically the strongest time of the year for the market,” Cramer stated.

Analysis of 47- day and 150- day cycles, another preferred method of Williams, informs a comparable story.

“We’ve got two different chart techniques that are both calling for the same outcome. That’s called confirmation,” Cramer stated.

According to Williams, purchasing the S&P 500 futures on the 22 nd trading day of October or the very first trading day of October has actually been a constant winner over the previous 3 years.

“There’s no guarantee this pattern will work in 2021, but it has worked for the past 31 years and Williams has been on a roll for the past 18 months, so I tell you I wouldn’t bet against him,” Cramer stated.

“Maybe I’d start it the third week October, but bottom line: as we get closer to the end of October and the beginning of November, the charts as interpreted by the legendary Larry Williams. So maybe it’s time to get a little more constructive as we near the historic glory days,” he included.