Because the Volatility Index has not gone lower, 'you need to be careful when you see the averages rallying like this morning,' Jim Cramer says.
Carmer said "the charts, as interpreted by Mark Sebastian, suggest we are due for a bit of a pullback."
The S&P 500 in the past five trading days has expanded 5%. The VIX index initially fell from nearly 19 points, which Cramer called "textbook rally action." However, the volatility measure has hovered in the high 15-point to low 16-point range since Thursday's session as the S&P kept climbing. Sebastian, Cramer explained, does not expect the market to dive as dramatically as it did in January 2018. Still, there's reason to be cautious.
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