With the market tumbling on Tuesday and then rebounding on Wednesday, many investors feel they are sailing rough seas. Jim Cramer is helping to steady the wheel by asking for chart advice from experts.
To navigate, Cramer turned to Ed Ponsi, chartered market technician and managing director of Barchetta Capital Management. Ponsi has taken a close look at the charts and believes that investors may yet be facing choppy seas ahead.
To explain the issue at hand, let's go back to that dreaded death cross pattern that formed in the charts of the Russell 2000. The death cross—traditionally regarded by chartists as the most bearish pattern, in which the short-term 50 day moving average crosses below the 200-day moving average—showed up the first week of October.