After the S&P 500 posted its worst first-half performance since 1970, many investors are wondering whether the downtrend would continue for the remainder of the year.

But according to CNBC’s Jim Cramer, we could be at a turnaround. “I said to [David Faber] that July 13th will be the bottom. I said that in February,” he reminds viewers.

Cramer also uses analysis from market technician Larry Williams to show that the market could be ready for a rebound in the not-so-distant future.

“The last time we spoke to him about the broader averages in late May, he predicted that after some choppy trading the market would have a strong rally through late August. Right now, what he’s seeing in the [futures markets] confirms that thesis.”

Let’s take a closer look at the call.

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Three types of market participants

Cramer points out that the Commodity Futures Trading Commission releases data on the net holdings of three types of market participants every week: the public, large traders and fund managers, and commercial hedgers.

He explains that commercial hedgers are “companies that are actually involved in a given industry, meaning buying the futures because it’s part of their business model.”

And that group’s actions deserve investor attention.

“When it comes to these three groups, Williams has told us that he thinks the latter group — commercial hedgers — tend to have the best understanding of the particular sector because they are the only ones involved who are doing more than just gambling,” Cramer says.

He goes on to explain that commercial hedgers in stock futures mostly consist of banks, mutual funds, and governments.