Mad Money

S&P is headed higher, but then it's time to worry

Now that the Fed meeting is over, Jim Cramer can finally breathe easier. However amid a volatile market on Thursday that ended in the red, could the bounce back?

To find out where the S&P could be headed Cramer went off the charts to speak to Carley Garner, a technician and co-founder of DeCarley Trading and colleague of Cramer's at

Garner indicated that while the S&P has suffered weakness recently, this is only a temporary stop on its way back up. She thinks that the market is not overbought or oversold, it's right in the middle.

Looking back at the past performance of the S&P, Garner expects for it to head higher. Typically the S&P tends to rally from mid-March to the end of April.

"In fact, if you bought the S&P on March 15 and sold it on April 29, then you would have made money in 13 of the last 15 years. That's a pretty good track record," the "Mad Money" host said.

An important factor to take into consideration is the strong floor of support that the S&P has at 2040. Garner thinks that as long as the market stays above this floor of support, we are good to go.

She also took a look at the Relative Strength Index (RSI), which is the momentum indicator that helps chartists to predict trends before they occur. She noted that there is a strong correlation between the S&P and the RSI. Historically every time the S&P was hit hard, the RSI would drop to 30 or 40.

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The RSI has recently rebounded, and so has the S&P. Thus Garner believes that the S&P will head higher, all the way up to 2170 or 2180. At that point, she recommends doing some profit taking.

So while the market has been a sea of volatility lately, Garner's research indicates that the bull is still alive and kicking. The S&P 500 will work its way up to 2170 or 2180, and then it will be time to be more cautious.

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