Charts suggest S&P 500 is in ‘make-or-break’ moment, says Jim Cramer

CNBC’s Jim Cramer said Tuesday that the S&P 500 is at a critical juncture that could either lift it higher or lower its upward trajectory.

“Charts illustrated by Carolyn Boroden could cause some near-term volatility if the S&P 500 can’t break out above last week’s highs,” he said.

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The recent weakness in Apple stock may stem from investors looking for safety now fleeing

The S&P 500 and Nasdaq Composite closed lower on Tuesday, while the Dow Jones Industrial Average rose slightly, as stocks struggled to recover from the previous day’s losses. Protests against Covid restrictions in China.

To illustrate Boroden’s analysis, Kramer examined a daily chart of the S&P 500.

Cramer says the technical analyst sees the index approaching a critical barrier that could pose a real problem for its ability to continue gaining.

More specifically, he explained that the S&P 500’s recent run since mid-October is similar in size to its rally from late 2021 to early January 2022. When the rally that started late last year peaked on January 4, the index fell 1327 points to last month’s low.

“She’s not saying it’s the toast of the rally. But Boroden says the S&P needs to clear this hurdle — it needs to be above last week’s high,” he added, adding, “In short, she sees it as a make or break moment for the S&P 500, at least in the near term.” At least in time.”

For more analysis, see Kramer’s full explanation below.