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Cramer: The sparks that relit this market's flame

The market took a turn on Thursday, and suddenly half a dozen boxes were checked off from Jim Cramer's market bottom checklist, relieving the worries that were ailing many investors.

"In what can only be described as a pretty amazing 24 hours, a slew of worries were addressed, and even though these positives can be quickly undone, we still got a terrific rally," the "Mad Money" host said.

On Wednesday, Cramer said that stocks were oversold and the sentiment had become so negative that it wouldn't take much to spur a rally. Overnight, things started falling into place.





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"Everyone has to know how bad it is out there before you can even expect a legitimate bounce, let alone a lasting bottom." -Jim Cramer

The first thing Cramer saw was a front page article in the New York Times with the headline, "U.S. stocks continue slide on fears of slowdown." As soon as he saw such a prominently placed article, he knew the decline had become part of the American consciousness.

"Everyone has to know how bad it is out there before you can even expect a legitimate bounce, let alone a lasting bottom," Cramer said. (Tweet This)

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Cramer was also glad to see that China, for once, didn't stand in the way of the U.S. averages. The Chinese market opened down and finished up, giving Cramer a hopeful sign that the Chinese Communists can manipulate their market to go up.

The next spark was that oil finally caught a bid. For two days it has been teetering on the $30 level, and it finally managed to close at $31. Even if it is just a dollar, that puts more distance to being in the $20s.

The final positive move that Cramer saw is something he could only describe as a miracle. St. Louis Federal ReservePresident James Bullard gave a thoughtful presentationthat gave investors reassurance of the Fed. Many realized that the Fed is aware of the impact of the decline in oil to inflation, and that the Fed may not be so heavy handed about rate hikes.

"You don't need all boxes checked. But when the Fed board member who is perceived to be the biggest champion of rate hikes starts to notice that inflation expectations are vastly reduced, then you can pretty much take all the chatter about the urgent need for more rate increases off the table," Cramer said.

So with FANG stocks finally crumbling, the sell-off making the front page of the Times, a rebound in China and in the price of oil combined with the biggest Fed hawk making a statement — those were the sparks that created the market flame.

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