- CNBC’s Jim Cramer said he sees reason for optimism after the S&P 500 bounced off its lows on Wednesday and ended the session essentially flat.
- However, Cramer warned that the market could fall further due to another rise in bond yields or a rise in oil prices.
CNBC’s Jim Cramer said he sees reason for optimism after the S&P 500 bounced off its lows on Wednesday and ended the session essentially flat.
This market experienced what Cramer called an “intraday bounce,” in which major indexes started the day worse and then recovered and trimmed their losses. However, Cramer said it was possible the market could fall further due to another rise in bond yields or a rise in oil prices.
“Did today’s intraday bounce mean much?” he said. “Well, it kind of did. Here’s the bottom line: Because for the first time in the last four weeks, the Bears, who were having a great time, finally had something to fear. And that alone means.” There could be a rally, at least as long as nothing happens to the bond market or oil tomorrow.
Cramer noted that this month’s market woes are consistent with seasonal patterns – with September being the worst month in history. But as the calendar turns to October, he hinted that conditions may be starting to change.
“There are too many events in the past to ignore the seasonal pattern,” he said. “You can’t afford to ignore history. That always leads to bad decisions, even when interest rates are much higher and oil prices are skyrocketing.”
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