As better-than-expected earnings results drove the Dow Jones Industrial Average more than 500 points higher on Tuesday, paring last week's losses, CNBC's Jim Cramer became cautiously optimistic about the fate of the rally.
"When the Fed bears are away, the stock bulls will play," the "Mad Money" host said. "As long as the Fed doesn't mandate a slowdown, you get what we had today and what I bet we could have tomorrow."
While several technical indicators had signaled to Cramer that the sell-off could be short-lived, some key fundamental factors paved the way for the Dow to see its best trading day since March, he said.
One of them was Netflix's earnings report, in which the streaming giant showed accelerating growth in revenue and in net subscriber additions, a closely watched number among Wall Street analysts and investors.
"Netflix reported incredible subscriber growth: 32 percent better for international, 62 percent stronger for domestic," Cramer said. "Now, that's crazy good."
Cramer added that Netflix's earnings beat not only provided "further fire" for the rally but, more importantly, proved that FANG — his acronym for the stocks of Facebook, Amazon, Netflix and Google, not Alphabet — was still alive and kicking.
"If Netflix is good, all of FANG — even the lagging Facebook, which I now kind of like — will trade higher. They'll trade higher tomorrow," he said. "Congratulations on Netflix. Others gave up on it. Other people buried FANG. Other people decided that FANG was dead. You know what? Wrong!"
Click here for more of Cramer's analysis on Tuesday's rally.