Watch certain technology stocks to better determine when the market might be ready to advance again, Jim Cramer said on Monday's "Stop Trading!" segment on CNBC. Cramer said he would monitor the semiconductor sector at this point because of its pullback. He also said following Apple ( AAPL) and Research in Motion ( RIMM), not the banks, will tell us when the selloff is over. He said if the stocks are rising before the open when the futures are down, it suggests mutual funds are buying the shares and putting upward pressure on the stocks.
Cramer also pointed out that if a company lays off a lot of workers, the market likes it. People feel Eaton ( ETN), for instance, hasn't done enough and that the company was too bullish. Its shares fell. In closing, Cramer defended restaurants. However, he said he would sell some retailers at these levels. "That restaurant group is still strong," he said.