Cramer: Charts Forming ‘Truly Ominous Pattern’
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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