Cramer Explains Why Veteran Technical Analyst Larry Williams Expects Stocks to Rally Soon

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Veteran technical analyst Larry Williams believes the stock market’s recent weakness may soon come to an end, CNBC’s Jim Cramer explained Wednesday.

The stock market's recent weakness may soon come to an end, according to veteran technical analyst Larry Williams.

"The charts, as interpreted by Larry Williams, suggest that .... we've got a fabulous setup for a meaningful, possibly long-lasting rally that no one is looking for," CNBC's Jim Cramer said Wednesday.on Wednesday broke down fresh technical analysis from veteran chartist Larry Williams, who concluded the stock market's recent weakness may soon come to an end.

"The charts, as interpreted by Larry Williams, suggest that .... we've got a fabulous setup for a meaningful, possibly long-lasting rally that no one is looking for," the"I wouldn't be at all surprised if this is an 'always darkest before the dawn' scenario," Cramer said, offering his interpretation of Williams' work."That's why I keep telling you to have some cash on hand as we do for the CNBC Investing Club ....

However, Williams believes the stock market may bottom within the next five trading days, Cramer explained. Among the reasons for Williams' call is the latest data from the Commodity Futures Trading Commission, specifically the net holdings of small and large speculators — as well as commercial hedgers — for S&P futures contracts.

Here's a chart showing the position of commercial hedgers for S&P futures — which in this case tend to be banks, mutual funds and possibly even governments — from 2018 to present.

 

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