- CNBC’s Jim Cramer said he sees reason for optimism after the S&P 500 on Wednesday managed to rebound from its lows and end the session essentially flat.
- However, Cramer warned that the market could fall further due to another rise in bond yields or higher oil prices.
CNBC’s Jim Cramer said he sees reason for optimism after the S&P 500 on Wednesday managed to rebound from its lows and end the session essentially flat.
This market witnessed what Cramer called an “intraday bounce,” as the major indices started the day in a worse state and then returned, trimming their losses. However, Cramer said it’s possible the market could fall further due to another rise in bond yields or higher oil prices.
“Did the intraday bounce mean much?” He said. “Well, yeah, it kind of happened. Here’s the bottom line: Because for once in the last four weeks, the Bears, who have been having a good time, finally have something to fear. That alone means there could be a rally, at least as long as “Absolutely nothing happens to the bond market or oil tomorrow.”
Cramer noted that the market’s suffering this month fits seasonal patterns, with September being the worst month on record. But as the calendar turns to October, he noted that circumstances may begin to shift.
“There’s too much history going on to ignore the seasonal pattern,” he said. “You can’t ignore history. It always leads to bad choices, even if interest rates are much higher and oil prices skyrocket.”
“Devoted student. Bacon advocate. Beer scholar. Troublemaker. Falls down a lot. Typical coffee enthusiast.”