The S&P 500 bounced off its lows on Wednesday and ended the session essentially flat.
This market saw what Cramer called an “intraday bounce” where the major indices started the day lower and then came back to cut their losses. However, Cramer said it is possible that the market could fall further due to another spike in bond yields or a spike in oil prices.
“Did today’s intraday bounce mean a lot?” he said. “Well, yeah, it kind of did. Here’s the bottom line: Because for once in the last four weeks, the bears who have been having such a good time finally have something to fear. And that alone means that there could be a rally, at least as long as nothing happens to the bond market or oil tomorrow.
Cramer noted that the market’s struggles this month fit into seasonal patterns – with September historically being the worst month. But as the calendar flips to October, he suggested that things could start to turn around.
“There’s too much history of this happening to ignore the seasonal pattern,” he said. “You can’t afford to ignore history. It always leads to bad decisions, even when interest rates are much higher and oil is soaring.”
