Much of the market's recovery after the 2008 financial crisis has happened during a time of very low interest rates. But when the economy starts to show real improvement, rates start to rise.
"As long as they were rising off low levels, we weren't that worried. At a certain point, though, you reach a place where good news for the economy is then bad news for the stock market," Cramer said. "We reached that point Friday."
When 10-year Treasury yields climbed above 2.8 percent on Friday, it set off waves of worry that the economy was overheating. The revived competition between bonds and stocks spooked investors, leading to declines in utility stocks and other high-dividend equities.
"So on Friday the sellers came for the industrials, which get hurt ... if [investors] think the Fed's going to raise rates too rapidly," Cramer said. "Of course, if rates come back down like they did today ... then we're probably closer to a bottom than we realize, but I don't think we're there yet."