Technical analyst Larry Williams, a veteran technical analyst, sees the potential for Wall Street to end the year relatively solidly, CNBC’s Jim Cramer said Monday.
Williams compared the performance of the Dow Jones Industrial Average in 2022 to the performance of the blue-chip index in previous years to see if history could offer any clues for the last four trading months. The technician found that the years 2014, 1962 and 1891 all had some similarities to this year, Cramer said.
“These historical analogs tend to be quite hit and miss, 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 damn good,” the “Mad Money,” said the host. “Despite what we went through last week, he is a buyer, not a seller.”
Cramer presented a chart of Williams’ work overlapping the Dow’s 2022 action with its 1962 trajectory.
Technical analyst Larry Williams compares the Dow’s performance this year with that of 1962.
“Mad Money with Jim Cramer”
They “might as well be joined at the hip,” Cramer said. “The 1962 analogy says we could have a really nice run in November and December after some sideways action” in September and October turbulence, he said.
For an in-depth look at Larry Williams’ work on historical analogs, watch Cramer’s full video explaining below:
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