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

Jim Cramer of CNBC said Tuesday that the stock market will not reach a lower level until sentiment finds a low point, similar to how stocks have recovered from the historic coronavirus-fueled sinking last year.

“A year ago, we caught a strange bottom, as the market experienced a change of guard, with the Covid winners taking on the role of new leaders,” said the “Crazy Money” host.

Exactly one year ago, shares sold at an unprecedented rate, pulling the S&P 500 benchmark down 35% from its February high in a few weeks.

A year later, the S&P 500 returned 82% from its lowest point on March 23, 2020. But that sentiment has changed, Cramer said, with many of the pandemic’s biggest winners remaining on the market to date.

“We are now dragged down by a similar change of leadership and, although I know we will finally get there, it could take some time for us to receive a crescendo again,” he said.

Major averages fell by about 1% in Tuesday’s session.

Nasdaq Composite fell 6.7% from its February highs as shares of the index retreated amid the reopening transaction. The Dow Jones industrial average is down 2.4% from its March highs, while the S&P 500 is at 2% of its all-time highs.

Cramer compared a moment of “crescendo” of the market, in which the sale of shares reaches its climax, with “a discordant synonym, and the instruments reach a beautiful conclusion”.

He suggested that we move on to another, albeit less severe than last year’s meltdown.

“When a tsunami of sales wiped out weak hands and the market fell, except for one symphony, many of us didn’t realize it was happening,” he said. “Since last year, we have had a huge evolution, but now the market is selling again.”