After a brutal day that raised the hopes of investors and then crushed them, Jim Cramer decided to discuss what a genuine market bottom looks like, so that Wall Street isn't fooled by another nonviable bounce again.
"When you are searching for a bottom, most people want to nail one specific moment and say here—this low and no lower. But bottoms tend to be less of an event and more of a process," the "Mad Money" host explained.
That is why Cramer turned to Bruce Kamich, a chartered market technician who is a professor at Baruch College, and colleague of Cramer's at TheStreet.com. Kamich pointed out that traders like to look for 90 percent down days as a starting point.
One of those days was Monday, where 90 percent of the total volume is down. That indicates that the selling has run its course and the weak hands have been obliterated. Another sign of a typical bottom is that the market stops being hammered with bad news.
However, Kamich thinks that even though the market had a dramatic intraday low on Monday, it will retest that low again before investors should feel comfortable in a bottom.