Though the market didn't bounce back completely on Tuesday, it did at least check off a few boxes on Jim Cramer's market rally checklist. He thinks that this is at least a step in the right direction for the bulls.
The S&P 500 and Nasdaq ended up slightly on Tuesday, finally breaking a three-day string of losses, while the Dow finished lower over concerns on the global economy. The Dow Jones industrial average fell 5.88 points, or 0.04 percent, to 16,315.19, while the S&P 500 gained 2.96 points, or 0.16 percent, to 1,877.7. The Nasdaq Composite added 13.52 points, or 0.32 percent, to 4,227.17.
"I am a huge believer, and I say it every night, that there are always better moments to sell than into panic," Cramer said. That is why Cramer recommends waiting through the bounce, though it was short lived on Tuesday, before selling.
But more than anything, the "Mad Money" host noted that this bounce gives investors a chance to catch their breath and change course.
That's right, do not adjust your screen, Cramer says it's time to do a course correction. There are just too many unresolved issues on his 10 step checklist that need to be resolved in order for the market to have a sustained rally.
But before focusing on what went wrong in Tuesday's market, let's take at a few of the things that went right:
Cramer said in his checklist that investors needed to see good earnings, particularly in the bank and tech sectors. Skyworks Solutions pre-announced a great quarter, which Cramer takes as a good sign as Skyworks dominates cellphone technology, including that of Apple.