Unfortunately there are strong fundamental catalysts in the market right now that favor both sides, that is, both the bulls and the bears.
And when that happens, pros like Cramer often turn to technical analysis for insights to determine which camp may have the upper hand. For the following analysis Cramer sought insights from Mark Sebastian, chief operating officer at OptionPit.com.
To get a handle on what may lie ahead for stocks broadly, Sebastian watches patterns in the Vix – the CBOE Volatility Index, which tracks the market's expectations of 30-day volatility in the S&P 500.
Although the index can be somewhat confusing, the most important point is that the Vix and S&P 500 are inversely correlated. That is, gains in the Vix are typically bearish – they suggest the S&P is going lower. Conversely declines in the Vix are typically bullish – they suggest the S&P is going higher.
And looking at chart patterns, Sebastian can't help but note that S&P 500 keeps hitting the same levels, while the Vix moves to progressively higher levels each time.