As major indices have moved into the oversold territory, led by the tariff-fueled selloff over the last three sessions, CNBC’s Jim Cramer has questioned the Tuesday up move in futures.

What Happened: “What a tough moment,” said Cramer in an X post, who is the host of CNBC's ‘Mad Money’.

According to him, the market looks technically ready for a bounce due to being oversold, and futures point to a strong open. However, the lack of clear positive news making the futures surge might make investors cautious about buying into this initial strength.

What a tough moment. We are so oversold and the futures are so high that buying here is a very difficult chore. We have been there before and the market can be a coiled spring without news

— Jim Cramer (@jimcramer) April 8, 2025

In the following X post, he also questioned whether buyers were discounting China’s retaliatory tariffs that could worsen the state of the economy. Cramer wonders if the current buying is rational or it “is all a big trap?” He’s cautious about buying into the current positive momentum after successfully avoiding panic selling the day before.

Are the buyers gambling that it doesn't matter if we put another 50 on China, that stocks are that low? Or is is all a big trap? We succeeded in not selling into yesterday's panic. But can we really buy into today's euphoria?

— Jim Cramer (@jimcramer) April 8, 2025

Why It Matters: The technical analysis of the exchange-traded funds tracking the S&P 500 and the Nasdaq 100 indices, SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), shows that both of them have slipped into the oversold zone.

According to Benzinga Pro, SPY was trading below its short and long-term simple daily moving averages, and its momentum indicator signaled a bearish trend with a negative 14.73 MACD line.

Its relative strength index at 23.11 was below the threshold of 30, indicating that it was in the oversold territory and could be poised for a bounce back.

Similarly, QQQ was also below its short and long-term moving averages, having a negative MACD line of 16.90, suggesting a bearish trend. Its RSI at 28.59 was also in the oversold zone.

Cramer, in an earlier post, also expressed skepticism about Monday's post-market futures rebound, calling it "strange" following nine consecutive down days in futures trading.

We don't want to se the futures up this much. So strange. We have come in down every night for 9 nights. Now the futures are up huge. Where are the sellers. Things aren't "better" now unless we are at levels people, at last, like.

— Jim Cramer (@jimcramer) April 8, 2025

Price Action: As of Monday, the S&P 500 was 17.65% below its previous record high of 6,147.43 points. The Nasdaq 100 continued to hover in the bear market territory, 21.56% lower from its previous high of 22,222.61 points. The Dow Jones, on the other hand, was down by 15.77% from its 52-week high of 45,073.63 points.

In premarket on Tuesday, the SPY was up 1.28% to $510.85, while the QQQ advanced 1.06% to $428.17, according to Benzinga Pro data.

Read Next:

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Image via Shutterstock

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