Cramer: Safe to buy the market dips again

The stock market certainly feels better to Jim Cramer, but the question still remained if it is actually better. To determine the progress, he turned to the market-bottom checklist created back in January to determine if this market really has what it takes to provide a sustainable rally.

No. 1 The Fed must provide clarity on where it stands for rate hikes. Based on the recent commentary from James Bullard and Bill Dudley, Cramer will check this one off, as long as there isn't a strong employment number Friday.

No. 2 Political uncertainty must be resolved. Barring something extreme, Hillary Clinton and Donald Trump appear to be the leaders. Check.

No. 3 China must get better. It's actually gotten worse, but the Baltic freight index as gone higher and there is a big meeting in China this weekend with an expected stimulus. This one is a half-check.

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"I'm feeling good that crude may have bottomed at $26 and that level won't be breached." -Jim Cramer

No. 4 Commodities must bottom. With copper leading the rally in commodities, Cramer is feeling more confident. Check.

No. 5 Oil must stop going down. Oil stocks have stabilized and even with a large increase in inventory on Wednesday, oil still went higher. Check.

"I'm feeling good that crude may have bottomed at $26 and that level won't be breached. I don't expect a big rally here, but the downside seems to be quantified," the "Mad Money" host said.

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No. 6 Geopolitical improvement. With North Korea quiet and a ceasefire in Syria, Cramer gave it a definitive check.

No. 7 Zombie companies must be put to death. Many zombies suddenly now have a pulse, which Cramer did not expect. There have been many equity offerings for oil companies to raise money to save their balance sheets. That has caused stocks of banks that loaned money to rise. Check.

No. 8 Relief from the strong dollar. With the euro recently losing strength again, there is no check in sight.

No. 9 More mergers and acquisitions. There has been activity, with Johnson controls and Tyco and the dissolved deal with Honeywell and United Technologies. Things are getting better, so it gets a half-check.

No. 10 A healthy IPO market. No check

No. 11 Industry peaks. There has been a resurgence of homebuilder stocks and split data from Ford and GM on autos. Aerospace remains strong, and Cramer thinks Apple's stock could have put in a bottom. This gets a half-check.

No. 12 Less negativity. It was almost two weeks ago that Cramer saw a level of negativity he had not seen in ages. That panic has subsided. Check.

No. 13 More sector leadership besides FANG, Cramer's acronym for Facebook, Amazon, Netflix and Alphabet, which is now happening. Retail and restaurant stocks have bottomed and gone higher, so it gets a check.

No. 14 Lower energy prices must drive stocks higher. Other than a few companies, this hasn't happened yet. There has been very little upside. No check.

"You are never going to have all the planets align at once. But there are enough checks and half-checks for me to say that it makes sense to buy the dips in this market," Cramer said.

As for the rips, Cramer recommended not to sell them because they could be real.

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