Just Marking Time

The velocity of the downside seems to have tapered off, Cramer says.
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Right now, this looks like a "marking time" day. Nothing the matter with that. Seems quite constructive to me.

I like to view these days upside down. In other words, let's say yesterday was a giant up day. If today was not an up day, we could expect the talking heads to say there wasn't a lot of follow-through and make it sound like a bummer of a day.

Pretty funny.

The same thing can be said for a down day, however. If you were short the

Nasdaq 100

, for example, you probably aren't too happy today. Right now, the NDX is up 7. Sure it was up much more at one point, but the important thing is that the market is down right now.

Does it happen? Yes, in 1990, 1994 and 1998, we had a couple of wall-to-wallers -- just grim days that fed on each other. This lack of follow-through is incredibly frustrating if you are a bear or if you took action midday yesterday to bet against the market. Any puts we bought yesterday aren't making us much money.

The velocity of the downside seems to have tapered off. That's bullish, not bearish.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.