Amid news of explosions in Belgium's capital on Tuesday, stocks were justifiably down at the open, but then rallied for most of the afternoon and pulled back shortly before the close.
Jim Cramer explained the action on the market, stating "We call it the underlying bid. That is a term that means buyers are lurking underneath current prices and when those prices drop, people start buying."
By the end of the day, the stocks affected were those directly related to travel and leisure as they will have the most have a loss of business. Cramer added that the rest of the market was able to mount a comeback because there has been an underlying bid since stocks bottomed in mid-February.
Beyond that, Cramer noted that another event occurred to suggest stocks are undervalued currently. Tremendously negative commentary emerged from both Transocean and Schlumberger, with the companies stating that it could take years before things get better.
But these stocks barely budged; Cramer interpreted this as resilience.
The technology sector also displayed resilience; the group continued to climb though there hasn't been any big news lately.
Even the health care bear market seemed to be coming to an end, or at least show promise. Pharmaceuticals were once even more loathed than the banks after political attention turned their attention to the issue of price gouging.
"I don't want to pronounce the big bear market over in all of health care. However, it does seem to be the case that the pressure is off for now, with both big pharma and fast growing biotech stocks having reached levels where the sellers seem to have gone away," Cramer said.