On Monday’s Mad Money, we talked about how the common wisdom on Wall Street just wasn’t working. Cyclical stocks and their recession-resistant counterparts were plummeting simultaneously instead of rising and falling opposite each other. Staid and stable utilities were declining. New lows weren’t rebounding back into positive territory, and trillions of dollars were sitting on the sidelines. Investors seemed to have lost any way to deal with this volatile market.
But there is one school of trading that has proved its worth during this downturn: technical analysis. The best practitioners knew Tuesday’s rally was coming. And one of Cramer’s favorite technicians thinks that rally will continue and we’ll see one in Bank of America, too. It’s a bold call even after Tuesday’s big move, the Mad Money host said. So to get at the logic behind it, Cramer looked to the charts for both BAC and the S&P 500.
Watch the video for an in-depth look at DeMark modules, nines, countdowns and all the other technical jargon used to make a bullish case for Bank of America and this market. And Cramer will tell you whether or not he thinks the charts are right.
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