Prominent market commentator Jim Cramer said on Monday that stocks in the benchmark S&P 500 are likely to increase next month.

“The charts as interpreted by the legend Larry Williamssuggest that the Santa Claus Rally is coming to town next month and you need to prepare for that or you might be left behind,” said Cramer. according to to a CNBC report.

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The pundit previously emphasized Williams’ comments when he said stocks could recover by the end of 2022. “We’ve had a very good run since then, so as we get closer to the holidays we have to ask if that’s possible to continue?” Cramer said, according to the report.

Long term pattern: Cramer analyzed the S&P 500 chart and pointed to the blue line, which is Williams’ model of the index’s seasonal pattern — the way it has historically traded at any given time of the year.

Diagram courtesy: CNBC

Cramer said he believes the pattern for stocks is biased bullish through the end of the year, suggesting the market’s recent strength may be far from over.

“Williams points out that there tend to be two sweet spots for the S&P at this time of year: the first runs through late November, and the second through mid to late December,” Cramer said.

Wall Street has started heeding the Federal Reserve talks as major indices have lost steam over the past few days. That SPDR S&P 500 ETF Trust SPY ended Monday’s session down 0.36% while the Vanguard Total Bond Market Index Fund ETF BND ended flat.

Short term prognosis: In the near term, there’s a chance that stocks could weaken a bit by the end of November, but the S&P 500 could rise in December as the cycle develops, Cramer said, citing Williams’ short-term cycle forecast.

Diagram courtesy: CNBC

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