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Cramer: This Correction Is Long in the Tooth

Editor's Note: This article was originally published at 6:46 a.m. EDT on Real Money on June 6. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK (Real Money) -- I had only one laugh yesterday when I heard people asking, "Is this the start of the long-awaited correction?"

I was laughing, of course, in a sardonic way because the truth is that a lot of stocks have been annihilated already, and the idea that it is the start of their decline is pretty silly.

If you look, for example at the real estate investment trusts, you have to ask, "Could it soon be the beginning of the long-awaited rally?" That's what the picture of Federal Realty (FRT) begs you to ask. Same with Ventas (VTR), as our own Tim Collins showed us last night on "Mad Money's" Off the Charts segment.

Same with the utilities. Have you seen National Grid (NGG)? FirstEnergy (FE)? Sellers have just laid those to waste.

Yep, this correction has been vicious and, in some cases, long, as the breakdowns and rollovers that started two weeks ago have really gained steam at an alarming pace. The oversold measures I follow are the worst in 18 months.

You would only think to ask whether this was the start of the long-awaited correction if you were looking at selected, low-multiple technology stocks and some insurers. You would think that everything is AOK if the only stocks you owned were Texas Instruments (TXN), Analog Devices (ADI) and Seagate (STX)

It has been that limited to the upside for that long.

Of course, if the earnings aren't coming through, as they didn't for Ascena Retail Group (ASNA), Francesca's Holdings (FRAN), Vera (VRA) -- the handbag company this is definitely not Michael Kors (KORS) -- or VeriFone Systems (PAY), that's a different story. For them, the correction could be much deeper.

And if others miss the quarters then there's tons of pain ahead.

But the idea that the correction is just beginning?

We could only wish that because then we could sell and not be afraid of getting back in at the bottom because we are so far from it.

But my thinking is if you haven't, then wait for some sort of oversold rally because you very well might get a better price. In fact, I think, at least for some stocks, this was the beginning of the long-awaited bounce!

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