Gains in the market on Wednesday relieved many worried investors, as the Federal Reserve confirmed that it will not hike interest rates until Fed officials decide that the economy can handle it. Major indices posted their biggest one-day jump of 2014 and all 10 primary sectors of the S&P ended higher—only one closed with a gain of less than 1 percent.
So, we are in the clear, right?
Not so fast, Jim Cramer says. The relief rally will now depend on companies' earnings to drive this upward trend.
Just like Milli Vanilli's one-hit wonder in the 80's, Cramer thinks Wednesday's rally could have more rain to blame in the future. He put on his dirty gloves and dug into the reason why the stock market could see pain ahead.
"The problems many companies are facing right now are beyond the purview of the Fed," Cramer said. To start, commodities are still on the ropes, especially the huge burn Wednesday with oil and gas stocks that are in the S&P 500. Cramer thinks this could have been created by the power of the hedge fund managers who were shorting the S&P aggressively and are suddenly covering positions.