Jim Cramer says six things must happen before the market sell-off can end

CNBC's Jim Cramer connected Tuesday gave a six-item checklist for what indispensable hap earlier helium volition beryllium acceptable to state an extremity to the marketplace sell-off.

The Dow Jones Industrial Average and the S&P 500 had their worst time since Dec. 15 connected Tuesday, with each assemblage closing lower, particularly user discretionary stocks. Cramer said the assertive selling is simply a absorption to Wall Street buying excessively overmuch earlier successful the twelvemonth connected the stake that the Federal Reserve would little inflation.

"Now that we're getting discouraging information connected the ostentation front, overmuch of the buying, well, it needs to beryllium unwound. That's wherefore the selling is truthful aggressive," helium said.

As the marketplace swings the different way, successful what Cramer called a "Presidents Day sale," helium said the downturn mightiness not beryllium conscionable a one-day affair. In bid for the sell-off to end, according to Cramer, six things request to happen:

1. The accelerated emergence successful Treasury yields indispensable dilatory down. The benchmark 10-year Treasury output accrued to 3.9% connected Tuesday, portion the 2-year complaint roseate to 4.7%.
2. Anomaly stocks that are trading disproportionately high, galore of which are successful the tech sector, request to travel down.
3. Recession-resistant stocks similar PepsiCo and Merck request to rebound, which Cramer said is connected its way.
4. Banks request to stabilize. As agelong arsenic involvement rates bash not rapidly spike, Cramer said that banks tin bring a batch of worth by coexisting with higher rates.
5. Retailers request to place the industry's winners and losers. He pointed to Walmart, which reported positive fourth-quarter results, versus Home Depot, which released disappointing fourth-quarter earnings.
6. The marketplace needs to beryllium overmuch much oversold arsenic measured by the S&P oscillator, which helps nonstop capitalist behaviour successful times of large upswings oregon downturns.

"It's a gangly bid here. I don't adjacent cognize if we tin get each six of these," Cramer said. "Unfortunately, this Presidents Day merchantability doesn't consciousness similar it's over. But this checklist volition springiness america a existent bully feel. Until much of these boxes get checked, respect the sellers. In fact, you mightiness adjacent privation to articulation them."