In addition to weak European markets, the falling price of oil and disappointing housing numbers, Cramer on Tuesday cautioned investors on yet another negative sign of the economy: the charts.
“The charts are terrible,” said Cramer, adding that, in particular, the chart of the Standard & Poor’s 500 Index seems to be forming “a truly ominous pattern” known as a head-and-shoulders formation.
While Cramer discounted the “Hindenburg Omen” discussed by some technicians last week, he is concerned about this head-and-shoulders pattern. Because it could mean the market is headed for a “major decline.” To better understand what’s going on here, Cramer consulted Dan Fitzpatrick, a highly regarded Wall Street technician. Watch the video for his full analysis of the charts.
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