Cramer's 'Mad Money' Recap: Batten Down the Hatches (Final)

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NEW YORK (TheStreet) -- "Sometimes huge moves in few stocks can signal which ways the market's headed," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.

He said the key to understanding the markets is to learn what the big movers are signaling.

Case in point, Panera Bread (PNRA Quote), which was up 7% today on a strong quarter as consumers trade up from fast food to better food, along with heavy equipment maker SPX Corp (SPW Quote), which was down sharply on falling new home starts.

To the novice investor, the moves in these two stocks may not seem important. But Cramer said to him, they're signaling that the consumer economy is good, but the industrial economy is not only bad, but may be getting worse.

Cramer said investors are right to worry that a new leg lower may have come to the markets. He said the leadership groups that led the rally off Dow 6,500, mainly technology, oil and the banks, are starting to break down, with bellwethers Apple (AAPL Quote) and Google (GOOG Quote) both down sharply, along with several key banks, and with oil unable to trend any higher.

Cramer said its no wonder that the defensive stocks, like Wal-Mart (WMT Quote), Coca-Cola (KO Quote) and Colgate-Palmolive (CL Quote) were higher today, as investors begin to lock in profits and start thinking defense.

He said that the 5% to 7% market correction he's been predicting may be at hand.