Charts recommend the S&P 500 is poised for a short-term bounce

Semiconductor shortage to be in focus yet again

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Technical expert Carolyn Boroden believes the S&P 500 might quickly see a short-term rally, CNBC’s Jim Cramer stated Tuesday.

“The charts, as interpreted by Carolyn Boroden, suggest that the S&P 500 is poised to give us a couple of days bounce over the next week-and-a-half, with a real possibility that that bounce started today,” the “Mad Money” host stated.

“However, she also believes this is relatively short-term in nature — not a reason to buy stocks, but maybe a really good reason to reposition and get into areas that are more defensive and less dangerous,” Cramer included. “So, lighten up into this rally.”

Boroden forecasted this swing after discovering a substantial variety of Fibonacci timing cycles coming due in between Monday and Thursday, according toCramer She and other market service technicians utilize the Fibonacci method to identify patterns that can signify when a stock or other security might move instructions.

Below is a day-to-day chart of the S&P 500 including the Fibonacci timing cycles that Boroden has actually recognized.

Boroden recognized 8 Fibonacci timing cycles coming due in between the other day and Thursday.

The chart reveals the 8 Fibonacci timing cycles within a four-day stretch. “To put it in perspective, when she’s normally trying to spot potential lows or highs, she starts taking these timing cycles seriously once there are three or more in close proximity to each other,” Cramer stated.

Cramer stated that while Boroden thinks this suggests the marketplace might discover a short-term bottom, other parts of her technical analysis recommend there might be more disadvantage down the roadway.

“Basically, the S&P still hasn’t fallen low enough for the chart to be screaming ‘bottom,’ and overall she thinks the technical picture is still pretty bleak,” Cramer stated.

He included: “Boroden says there’s good reason to expect an intermediate-term low this week, and that’s what may have happened starting today.”

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