Jim Cramer warns the S&P 500 'could get ugly in the future' and that the index could be riding into a 'make-or-break moment'

• "Mad Money" CNBC host Jim Cramer said the S&P 500 "could get ugly in the future."
• Cramer's warning is based on technical analyst Carolyn Boroden's views, who predicted the S&P 500 would crash at the start of the March.
• Boroden is betting on a 3,720 price target for the S&P 500.
• Boroden said the S&P 500 would have to breach 3,280 in order to meet her price target and if it doesn't a downside may be inevitable.

The S&P 500 has rallied 40% since touching its lowest point of the year in March, but Jim Cramer thinks the index "could get ugly in the future" and is braced for a fresh plunge.

The CNBC "Mad Money" host said the S&P 500 could be riding into "make-or-break moment," during his show Wednesday.

Cramer's dire warning is based on reviewing chart analysis by FibonacciQueen.com's market technician Carolyn Boroden who has placed a 3,720 points price target for the S&P 500, but thinks the index could be faced with a fresh crash.

"If it can't break through last week's highs at 3,100. Boroden thinks you need to prepare for pain because the near future could get ugly."

The index has been particularly volatile since touching a low of 2237.40 when the novel coronavirus pandemic was beginning to cripple markets. Since then the S&P 500 has rallied almost 40%.

Cramer said Boroden fears the S&P 500 won't hit her 3,720 price target until it can breach through the 3,280 level.

"Given that we failed to break through that resistance, she's worried about potential downside here," he said.

Big market players were initially optimistic that the index would surge as several states in the US began to open up the their economies. But in recent days cases have spiked, causing several states to shut down again, dampening investors' hopes for a swift V-shaped recovery in the US economy.

While the S&P chart is trading above its 50-day and 200-day averages, Cramer pointed out the 13-day exponential moving average is trading higher than the 5-day average, which usually signals a slowdown.

But Cramer stressed that this doesn't necessarily mean investors should withdraw their positions, as when the market does rally, and the 5-day and 13-day averages invert, markets will be in bullish territory, he said.

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Cramer added: "If the S&P can do that and then take out last week's highs, up about 40 points from here, then Boroden thinks we can resume the recent rally. In that case, she says, the S&P could tack on another 200 to 300 points from these levels."

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Boroden predicted the S&P 500 would fall further at the start of March. The index crashed later that month.