3 things are preventing the market from a sustainable rally

CNBC’s Jim Cramer said Monday’s rally won’t last as none of the headwinds in the economy have died down.

Stocks rebounded on Monday after an ugly month and quarter end on Friday, marking the best day since June for the Dow Jones Industrial Average and the best day for the S&P 500 since July.

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Cramer pointed out that the market has recently seen sporadic one-day rallies, but they have always been brought down by three things. Wednesday’s rally will likely meet a similar fate, he added.

Here are three things that are preventing the market from having a sustained rally, according to Cramer

  1. Russian invasion of Ukraine continues. Cramer pointed out that the two countries are still at war and that it seems likely that the energy crisis it is fueling could have serious consequences during the winter months.
  2. China is still under Covid lockdown. While tech stocks rallied on Monday, many of them are reliant on China, which is still beholden to Covid lockdowns with no end in sight.
  3. Homework-driven inflation is still on the rise. Wage, food and housing prices are still too high, Cramer said, adding that he didn’t have high expectations for the release of the non-farm labor report on Friday.

He also said the market is still incredibly oversold.

“The most impressive thing about today’s rally is that it happened. My feeling is that today’s rally is due to too much negative sentiment,” he said. .

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