The U.S. stock market is poised for more pain despite a rise at the start of this week’s trading, CNBC’s Jim Cramer said Tuesday.
“I think we’ll find that oil, which is in control, will go back down. There’s just too much; no reason for oil to rally. None,” Cramer said on “Squawk on the Street.”
Crude oil prices bounced back after hitting their lowest levels since 2003. Last week, U.S. oil prices fell about 10 percent.
WTI in 2016
U.S. equities kicked off the week trading sharply higher, after falling more than 2 percent Friday, on the heels Chinese economic data that came mostly in line with expectations. The markets were closed Monday in the U.S. due to the Martin Luther King Jr. holiday.
The Dow Jones industrial average gained 150 points at the open, while the S&P 500 and the Nasdaq composite rose more than 1 percent.
“This is a nice snap-back rally, but it’s based on nothing,” Cramer said