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Cramer: Dow 11,497 Signals Rally to Come

On Tuesday, the Dow Jones Industrial Average touched 11,497—the same level at which it closed 11 years ago.

"Now we are finally on even footing and ready to forge much higher," Cramer said, adding that from financials to retail, just a handful of key sectors make up the Dow. "When you go over each of these sectors individually, you can see why I think ... a real, multi-sector move higher may be about to begin once we take out that 1999 closing price of 11,497 for the Dow."

When it comes to the financials, Cramer expects the sector to be better in the next decade than it had in the last. In the past 10 years, he noted financial stocks have been beaten by government regulation, the mortgage crisis and dividend cuts. He thinks these stocks have bottomed, though, and could rally soon.

The pharmaceuticals also took a beating over the past decade. It's still unclear how companies will be impacted by health-care reform, which President Barack Obama signed into law in January. Although because Republicans won control of the House during the midterm elections, Cramer thinks companies will soon have greater clarity.

Packaged-goods stocks are selling at the lowest price-to-earnings multiples Cramer said he's seen in 31 years of trading. So, he's not too worried about this sector.

Technology is another incredible story, he said. The space has yet to recover from the dot-com collapse of 2000, but looks like it's close. He said all 10 of the tech stocks in the Dow are as cheap based on earnings as he's ever seen. They also benefit from the prospects of the mobile Internet tsunami, data-center growth and cloud computing.

Speaking of the mobile Internet tsunami, Cramer thinks it should also help AT&T and Verizon , which are the two telco companies in the Dow. Both stocks are considerably down from where they were the last time the Dow hit the 11,490 level. Today, they're helped by increased video and data traffic via wireless communication. Cramer thinks they have great growth value and juicy yields to boot.

Retail is tough, Cramer said. But coming out of a recession and into a period of sustained job growth, he thinks this sector will bounce back.

There is no lid on energy stocks, as global demand for oil continues to push prices higher. Cramer thinks it's incredibly cheap right now.

Lastly, the diversified manufacturers of the Dow have the brightest futures of the whole group. Many of these companies are already focusing on emerging markets, where demand is great. Cramer said their price-to-earnings multiples are the healthiest of the entire Dow. He thinks these companies will soon produce the biggest upside surprises, sending their stocks higher.

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