What could go right here? It is time for a checklist of things that would change the course of this miserable market.

    The retail sales number is a precursor to other slower numbers, including the producer price index tomorrow, which would lead the Fed to do 50 basis points and then retreat for the summer. The market, which was hideously overvalued a few months ago, now is modestly overvalued. New buyers could come in. When Applied Materials (AMAT) - Get Report was trading at 22 times next year's earnings this morning, that seemed downright cheap. LSI (LSI) - Get Report traded at 25 times earnings earlier. Cypress (CY) - Get Report at around 20 times. These are not outrageous multiples. The cathartic kick out of Cisco (CSCO) - Get Report may have occurred. Cisco has gone from loved to less-than-loved overnight. Maybe that has to happen before it can bottom. Dot-coms stop going down and the managements begin to realize that these are the real prices and they finally start consolidating and selling out. Believe me, this is about to happen. Takeovers are next. People believe the market has retested the lows, and held. The technicians would love to get back in. I don't like this kind of stuff, but I am not oblivious to it. (Is that what just happened with Intel (INTC) - Get Report?) Some analysts who had been bearish, turn bullish. We really need this to get anything going. Jeff Berkowitz finally gets to take a few days off. He finally has. Enjoy Jeff!!

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Applied Materials, LSI, Cisco and Intel. 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.