"The real culprits, the one-two punch that knocked tech down on the canvas," were a narrative that the data center — the heart of most new-age tech including the cloud and the internet of things — was peaking, and the stock market's reaction to the most recent earnings reports from Amazon and Google parent Alphabet, two FAANG members, Cramer said.
"The idea that the data center's a spent force has been deadly to the whole sector," he said on "Mad Money" as tech dragged on the broader market. "It's the new narrative that refuses to go away regardless of all the evidence to the contrary, and there's a lot of it."
Meanwhile, the reaction to Amazon and Alphabet's middling quarterly results delivered the "uppercut that knocked the whole group" off its feet, Cramer said. Since then, the bear market in tech has been raging, unassailable by even positive news from individual companies.
"We've entered a world where good news is irrelevant and bad news is all that matters," Cramer warned. "I don't see how tech can give you a sustainable rebound without some hard evidence that the data center's OK or that its weakness is purely overcapacity and not a slowdown in demand from the cloud. Until then? You've got to wait until the knives are done falling."