Charts suggest the market could end the year strong
Longtime technical analyst Larry Williams sees the potential for Wall Street to end the year on a relatively solid note, CNBC’s Jim Cramer said Monday.
Williams compared the Dow Jones Industrial Average’s performance in 2022 to the blue-chip index’s performance in previous years to see if history could provide clues over the past four months of trading. The technician found that the years 2014, 1962, and 1891 all shared some similarities with this year, Cramer said.
“These historical analogs tend to be pretty good or bad, but if you look at the years closest to 2022, the charts — as interpreted by Larry Williams — suggest the rest of the year is looking pretty darn good According to the Mad Money host, the host said. “Despite everything we’ve been through last week, he’s a buyer, not a seller.”
Cramer presented a chart of Williams’ work overlaying the movement of the Dow in 2022 alongside its 1962 trajectory.
Technical analyst Larry Williams compares the Dow’s performance this year to its performance in 1962.
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They “might as well be joined at the hip,” Cramer said. “The analogy from 1962 says we could have a very nice run in November and December after some sideways movement,” he said in September and October.
Watch the full video of Cramer’s explanation below for an in-depth look at Larry Williams’ work on historical analogues:
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