The charts show that 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 puts the performance of the Dow Jones Industrial Average 2022 against the performance of the blue-chip index in previous years to see if history can provide clues to the last four months of trading. The years 2014, 1962 and 1891 all have some similarities to this year, Cramer said.
“These historical analogies tend to be pretty hit or miss, but when you look at the years closest to 2022, the charts – as Larry Williams explains – show that the rest of the year looks pretty,” said the Mad Money host. “Despite what we went through last week, he’s a buyer, not a seller.”
Cramer presented a chart of Williams’ work that included the action of the Dow 2022 along with its 1962 trajectory.
Technical analyst Larry Williams compares the Dow’s performance this year to its performance in 1962.
“Mad Money with Jim Cramer”
“They can also be combined together,” says Cramer. “The 1962 analogy says we can have a very nice run in November and December after some sideways action” in September and October, he said.
For a closer look at Larry Williams’ work on historical analogs, check out the full video of Cramer’s explanation below: