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The S & P 500 may "get ugly" within the close to future, warns Jim Cramer

The S&P 500 could get into a "make-or-break moment" at short notice, CNBC's Jim Cramer warned on Wednesday.

The "Mad Money" host came to this conclusion after reviewing the chart analysis by Carolyn Boroden of FibonacciQueen.com, a market technician with a price target of 3,720 but worried about the impending decline in the broad index.

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

In May, Boroden predicted that the market was in rally mode as it neared an initial price target of 3,280. The index stood at 3,232 in June, before falling 7% within three trading days.

Boroden believes the S&P 500 will not reach its 3,720 price target – a 19% increase from its current level – until it breaks 3,280, Cramer said.

"Given that we were unable to break through this resistance, she is concerned about possible drawbacks here," he said.

The daily S&P chart paints a darker picture. Cramer pointed out that while the index is trading above its 50-day and 200-day moving averages, another indicator is singing a bearish tune.

The 13-day exponential moving average is currently above the 5-day average, reflecting the slowdown in momentum. However, this is not a call to investors to give up their holdings. If the market rallies and the 5-day and 13-day averages are reversed, it will trigger a bullish activity on Wall Street, Cramer said.

"If the S&P can do that and then hit last week's highs about 40 points from here, Boroden believes we can resume the recent rally," said Cramer. "In that case, she says, the S&P could get another 200-300 points from these levels."

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