The golden question on everyone's mind right now is when the amazing Trump rally will run out of steam. Unfortunately, Jim Cramer does not know the answer to that.
The good news is that the market can give hints, as long as a trained eye knows how to look for them. That is why Cramer enlisted Mark Sebastian to take a look at the relationship between the averages and the CBOE Volatility index, known as the VIX for short, which measures the level of volatility that traders expect in the near future.
"In times of euphoria you need a non-emotional gut-check, and as the technicals … suggest that we could still be in the early innings of this rally," the "Mad Money" host said.
Many investors also use the VIX as a fear gauge, as it can provide insight during times of panic or euphoria in the market. Sebastian is a technician who is the founder of OptionPit.com and colleague of Cramer's at RealMoney.com. He also happens to be an expert at reading signs for the VIX.
Sebastian found that right after President-elect Donald Trump's surprise victory, the VIX fell as the market climbed. That was a sign that investors believe in the rally, and it isn't finished yet.