Charts suggest S&P 500 may struggle in August while gold looks set to rally, Cramer says

Charts suggest S&P 500 may struggle in August while gold looks set to rally, Cramer says

Investors may be able to find positive returns in gold while the S&P 500 enters a historically challenging month, CNBC's said Monday. "The charts, as interpreted by the legendary Larry Williams, suggest that August could be a tough month for the , but a terrific month for gold. Given the big picture backdrop right now, that wouldn't surprise me one bit," the host said. "Remember, during the original debt ceiling debacle a decade ago, the stock market broke down and ... gold did great," Cramer added, alluding to the fact a two-year suspension of the debt ceiling expired at the end of July and Congress now needs to . Looking at the S&P 500, in particular, Cramer said Williams sees diminishing breadth when tallying the number of advancing stocks versus declining stocks. This is in addition to a difficult seasonal period for the broad equity index, which is up 16.8% year to date, Cramer said. "Just since the beginning of the summer, [Williams] can point to three moments when the S&P rallied to higher highs but the Advance/Decline line failed to make a higher reading, meaning the market went up on not-so-hot breadth," Cramer explained. "For Williams, that suggests lots