"This tells Larry that we might already be turning the corner on inflation. It's just not obvious to anyone on the surface yet," Cramer said.
Williams also observed that the CPI has a dominant five-year cycle, which suggests that it should peak around the middle of this year and keep tumbling through 2025, Cramer said. Here is the chart showing the cycle: "Williams sees it as a terrific way to get a real sense of the stock market's internal strength. … But he also likes to use the advance/decline line to make cyclical projections," Cramer said.
Here is a chart of the advance/decline line going back to May 2021. Williams' cyclical forecast is in red:
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