Cramer said that economic news doesn’t have to be positive for the market to post significant gains. Case in point: A two-day rally Thursday and Friday in which the S&P popped 3.6 percent.
“We got that rally because Spain’s economy, as represents by its national bonds, were cratering, and taking the euro with them,” he said. “We were at the point where no one could think of a way to stop the car from smashing into the wall. Or so we thought.”
What happened was that European Central Bank head Mario Draghi made comments on Thursday that halted the slide and prevented a crash.
Then, German Chancellor Angela Merkel supported the ECB’s efforts to save the sovereign bond markets, giving the rally a second day of positive movement.