RealMoney Radio Recap: Technically Speaking

After a 100-point drop the previous session, the markets are trying bounce back, Jim Cramer told his "RealMoney" radio show listeners Wednesday, adding that markets always move faster on the way down than on the way up.

"Why do we even have a bounce?" he asked.

"Whenever there is volatility, investors look for any totem ... anything that makes them feel less lonely, less fearful. And that's what technical analysis is about. And that's why technical analysis is leading the charge for the bounce today," he said.

Cramer described technical analysis as a study of patterns that allow market technicians to divine the market's next move. They look at the chart of where the market has come from in order to forecast movements based on past trends, he said.

Even though he doesn't use technical analysis as the basis for his trades, Cramer said that this information is helpful. For example, the S&P 500 went down a lot last week, and when the market fell on Tuesday, it hovered near that same level.

The technicians saw that the old low level held its ground yesterday, so the market found some support, people decided it could be OK to get back in and stocks bounced back today, he said.

Don't get greedy during these technical rallies, Cramer said. He believes that investors should sell a little into this strength. "I really and truly think that when we have any snapback rally, you have to unload," he said.

"This is not a great market," he said, adding that there is no leadership and that market action has sometimes been led by speculation .

He likes markets that go up on fundamentals, so he said he is using this small rally to take a little off the table in his own portfolio, Action Alerts PLUS.