Jim Cramer says market won’t go down until he sees a moment of ‘crescendo’

CNBC’s Jim Cramer said on Tuesday that the stock market will not bottom until sentiment finds a low point, much like how stocks rebounded from the historic drop fueled by the coronavirus Last year.

“A year ago we hit an odd low as the market saw a change of guard, with Covid winners taking over as new leaders,” said the host of “Mad Money”.

Exactly a year ago, stocks have sold at an unprecedented rate, causing the benchmark S&P 500 to drop 35% from its February high in just a few weeks.

A year later, the S&P 500 rebounded 82% from its low on March 23, 2020. But sentiment has changed, Cramer said, with many of the pandemic’s biggest winners lagging behind. the market year to date.

“Now we’re dragged down by a similar change of direction, and while I know we’ll eventually fall, it might take a while before we get a crescendo this time around, too,” he said. .

The major averages all fell about 1% in Tuesday’s session.

The Nasdaq Composite Index is down 6.7% from its February highs as stocks in the index retreated amid the reopening of trading. The Dow Jones Industrial Average is 2.4% above its March highs, while the S&P 500 is within 2% of its all-time highs.

Cramer likened a moment of market “crescendo”, where the sale of stocks peaks, to “a jarring synonym, and instruments crumble to a beautiful conclusion.”

He suggested we head for another, albeit less severe than last year’s collapse.

“That’s when a tsunami of selling wiped out weak hands and the market hit rock bottom, except unlike a symphony, many of us didn’t realize it was happening. “, did he declare. “Since last year we’ve had a huge run, but now the market is selling again.”