CNBC’s Jim Cramer on Wednesday stated the Nasdaq 100 might reach a low today and provide financiers a possibility to unload some badly carrying out stocks, leaning on analysis from technical expert Carolyn Boroden.
“The charts, as interpreted by Carolyn Boroden, suggest the Nasdaq 100 could make an important low sometime this week — and maybe it’s already happened. If that’s the case, then the recent” market storminess might be over for the time being, the “Mad Money” host stated.
“However, you might not want to get too attached to this move because Boroden says the underlying technical picture … remains ugly. Still, you could get a good chance to unload some tech here in order to raise money to buy other things that might have an easier time in the market going forward,” he included.
The Dow Jones Industrial Average on Wednesday climbed up 1.01%, while the S&P 500 increased 1.12%. The Nasdaq Composite increased 2.03%.
Boroden utilizes the Fibonacci technique to make forecasts about the marketplace. A cluster of Fibonacci timing cycles coming due around the exact same time suggests a stock or index might be poised to reverse instructions, Cramer discussed, including that that’s how she understood the marketplace would bottom in mid-March
The Nasdaq 100 has actually been “almost straight down since that cluster of Fibonacci timing cycles she mentioned in March,” Cramer stated. He included that Boroden is watching on both time and rate criteria to discover the next market low where financiers might trade.
“On the timing front, she says she has two periods where the Nasdaq 100 is likely to make an important low. The first period is yesterday and today,” Cramer stated. “In other words, today’s rebound might have more staying power than you’d expect.”
“That said, according to Boroden, while these Fibonacci timing cycles are certainly helpful … we only get an actual reversal of the trend about 60% of the times when we see these reversal signals,” he included.
As for prices, Boroden stated there’s the possibility that the index as soon as again reaches its lows from March 14, according toCramer Yet she still thinks the Nasdaq 100 remains in rough shape as its rate remains listed below the 200- day basic moving typical and much shorter term 50- day moving average, he included.
Boroden is likewise viewing the five-day and 13- day rapid moving averages, Cramer stated.
“When the five-day goes above the 13-day … that’s her favorite buy trigger. When the five-day goes below the 13-day, it’s her favorite sell trigger. Right now, Boroden says we’re definitively in sell territory, not in buy territory,” he stated.
That suggests that even if the Nasdaq-100 reaches a notable low, financiers ought to still be prepared for the index to have another “downside failure,” Cramer stated.
“As she sees it, we’re definitely not out of the woods yet, and she’s certainly not making an all-clear call,” he included.
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