'The charts, as interpreted by the legendary Larry Williams, suggest that it's time to stop panicking, stop complaining and start buying,' Jim Cramer says.
Based on analysis from Larry Williams, the renowned stock trader credited for creating a number of market barometers including the aptly-named Williams %R momentum indicator, investors should expect the stock market to cycle through a hot streak in September, a steep fall in October and another upswing at the end of that month.
Williams, the author of nearly a dozen books particularly on stocks and commodities trading, made his prediction by assessing three charts: the advance/decline line, the volatility index and theThe advance/decline line is a technical indicator that tracks the sum of stocks that both rise and fall during a trade day.
"It's a pretty ironclad correlation and it only breaks down when the market's about to make a major reversal," Cramer said. "Remember, when the VIX goes down, the stock market goes up. So this volatility cycle suggests it's time for the S&P 500 to rally ... likely through the end of September."
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