With the S&P 500 ETF (SPY) - Get Report racing higher on Tuesday, up over 1%, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, turned his attention to the retail sector on CNBC's "Stop Trading" segment. 

The Retail Select Sector SPDR ETF  (XRT) - Get Report , up 1.5% on the day, has been under significant pressure this year. However, that may be changing as stocks such as Macy's (M) - Get Report and Kohl's (KSS) - Get Report have stopped going down, Cramer said. 

Even though Nike's  (NKE) - Get Report stock has been a "dog" since it reported good earnings results in December, and Under Armour (UA) - Get Report shares have been hammered this year, that hasn't stopped analysts from starting to turn a bit bullish, too, he added. 

Bank of America/Merrill Lynch analysts added Foot Locker (FL) - Get Report to its U.S. 1 List, despite the struggles seen in athletic stocks, he noted. 


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It seems like too many investors are too negative on this sector, he said, adding that it looks like retail stocks should find some support. Gasoline prices continue lower, which may allow for a slight uptick in consumer spending.

"If the Fed says the right thing" when it releases its statement Wednesday, the market could rebound, Cramer said. 

He explained that if the Federal Reserve says it will be more data dependent when it comes to the rate hikes and less focused on hiking four times this year, it will likely lead to a market rally.

If, on the other hand, the Fed sticks to its current blueprint of raising rates four times in 2016, stocks are likely to sell off, Cramer said. 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.