With the market sitting at or near all-time highs, should you sell or buy more?
In other words, can the averages keep on roaring, or have we reached a level where stocks are overextended and due to get pummeled?
"This is the kind of issue where it really pays to check your emotions at the door and think about things empirically," Cramer said. That is, it's easy to get swept up in the euphoria of the advance but euphoria is rarely a friend to investors.
Whenever pros such as Jim Cramer need to take emotion completely out of the equation they turn to technical analysis to see what chart patterns suggest.
And for the following analysis Cramer turned to Carolyn Boroden of FibonacciQueen.com.
Boroden is an advocate of charting so-called Fibonacci levels, a method of analysis based on a series of ratios discovered by the medieval Italian mathematician, Leonardo Fibonacci.
According to Fibonacci analysis, the way bull markets typically works is that you'll have a pullback that stops when it retraces a key percentage of a previous move higher—these key percentages all come from so-called Fibonacci ratios: 23.6%, 38.2%, 50%, 61.8%, and 100%.
Fibonacci analysis also suggests that in a bull market, once a decline ends, the stock market will gain more than 100% of the prior swing.