CNBC's Jim Cramer on Monday said there could be an opportunity to buy stocks ahead of a possible rally.
"The charts, as interpreted by Larry Williams, suggest that Christmas is not going to be canceled for Wall Street — he thinks we still have a Santa Claus rally coming, and the ideal time to buy is sometime around this Thursday," he said.
Cramer said that the market's recent downturn is the perfect setup for a Santa Claus rally, which describes U.S. stocks' tendency to rise near the end of the year and the beginning of the new year.
For Williams, it's a matter of when, not if, stocks will run up, according to Cramer.
To explain Williams' analysis, he examined the daily chart of the S&P 500 futures from November 2021 to January 2022.