Jim Cramer Says Markets Could Have 'A Very Nice Run' Over Next Couple Of Months

Prominent market commentator Jim Cramer said on Wednesday the markets’ recent gains could turn into a sustained rally.

“The charts, as interpreted by Larry Williams … suggest that the market could have a very nice run over the next couple of months,” Cramer said according to a CNBC report.

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Major Wall Street indices closed in the green on Wednesday as optimism over a decline in inflation gained momentum ahead of the release of consumer price index data on Thursday. The SPDR S&P 500 ETF Trust (NYSE: SPY) closed 1.26% higher, while the Invesco QQQ Trust Series 1 (NASDAQ: QQQ) gained 1.73%. 

Susan M. Collins, president of the Federal Reserve Bank of Boston, said she was leaning toward a 25 bps interest rate hike at the next FOMC meeting, according to a New York Times report.

Chart Analysis: In order to interpret Williams’ analysis, Cramer utilized the daily chart of the S&P 500 from late 2021 to early 2022.

He pointed out that every major rally during that period lasted for 24 days, according to Williams. Cramer added this pattern extended during the second half of 2022, with 24-day rallies in July, August and from mid-October to mid-November, according to the report.

The current week marked a new rally which should continue until Feb. 3 if the pattern holds — or even past that date, the market expert said. “Williams thinks we’re in the early, choppy phases of a bull market. To him, most of the bad news already got baked in last year, which sets us up for a better time in 2023,” Cramer pointed out.

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Photo: Owen Byrne from Flickr