Cramer: The Bulls Need This Sluggish Market Action

The market is now classically oversold, and this action is improving the setup into tomorrow's Fed meeting.
Stocks quotes in this article: DIS, COST, NKE

The bulls need this sluggish-to-down session. It takes the edge off what can happen tomorrow.

Now, I have seen more than my fair share of runups into big meetings, only to see a major falloff after. We also have seen runups where we keep running up.

But the market is now classically oversold -- at minus three on the S&P's proprietary oscillator -- and that could cushion the blow of what could happen, with a statement that is regarded as too hawkish by those who are asked about it tomorrow. There are a lot of stocks that are dropping hard today, and a lot of stocks that are treading water to the downside, so there is a better base of negativity going into the event.

Plus the stocks that are going up -- stocks like Nike (NKE) , Costco (COST) and Disney (DIS)  -- are ones that have been beaten up longer term.

So the setup's become better.

We just need the same thing tomorrow going into the meeting.

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Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

TAGS: Investing | U.S. Equity | Financial Services | Markets | Economy | Interest Rates | Stocks

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