Cramer said the week's employment report will be more important than usual. The market has been flying higher ever since the Federal Reserve reversed course in January and cut back on the number of planned interest rate hikes, he said.
The "Mad Money" host hopes a too-strong labor report doesn't pressure Fed Chairman Jerome Powell into tightening again. He said it's unnecessary because inflation has been "mild."
"I hope Powell won't be swayed—he finally seems to have a very good handle on things—but if he goes back to his old mindset, it could be well let's just say deadly given the run we've had," Cramer said.
Because the economy has been heating up, "peril awaits," Cramer said. He expects there to be some profit taking leading up to the jobs report. He also predicts "inflation hawks" will call for higher rates to fight off "imaginary" inflation, which could "cause at least a hiccup in the averages."
Cramer thinks the economy can handle one rate hike this year.
"We've been up for an awful long time. We're probably due for a break, especially with the unemployment number on the horizon," he said. "Don't get me wrong, I still like this market. ... And in most circumstances I'd tell you to buy the dips, but ... we've been up for 11-straight weeks without a dip, so maybe it's time to proceed with some caution."