The S&P 500 is down nearly 3% on Wednesday, and TheStreet's Jim Cramer took a closer look. 

Cramer, the co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment some technical analysis he's seen expects support between 1,832 and 1,847. If that fails to hold, the index is likely headed lower. 

Cramer expects the price to earnings ratio for the S&P 500 to fall to 15 from its current 16. It would be helpful if oil prices stopped falling, too, he added. 

SPY Chart
S&P 500 SPY data by YCharts

When the market is brutally declining, Cramer said he seek upgraded stocks to see how they are trading on the day. One such name is Sherwin-Williams (SHW - Get Report) , which was upgraded to buy from neutral at Goldman Sachs. 

After being in positive territory earlier, its shares have since slipped 1.4% despite the business being strong and the company benefiting from steady home sales and lower commodity costs, Cramer said. 

Overall, Cramer said he "remains cautious" of stocks. He wants investors to own equities but to do so at the right price. 

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