Longtime technical analyst Larry Williams sees the potential for Wall Street to finish out the year on a relatively solid note, CNBC’s Jim Cramer said Monday.
Williams put the Dow Jones Industrial Average’s 2022 performance in comparison with the blue-chip index’s performance in previous years to see if history might offer clues for the final four months of trading. The technician found the years 2014, 1962 and 1891 all presented some similarities to this year, Cramer said.
“These historical analogues tend to be pretty hit or miss, but when you look at the years with the closest fit to 2022, the charts – as interpreted by Larry Williams – suggest that the rest of the year’s looking pretty darn good,” the “Mad Money” host said. “Despite what we went through last week, he’s a buyer, not a seller.”
Cramer presented a chart of Williams’ work that overlays the Dow’s 2022 action alongside its 1962 trajectory.
They “might as well be joined at the hip,” Cramer said. “The 1962 analogy says we could have a very nice run in November and December after some sideways action” in September and October turbulence, he said.News Source: CNBC