Jim Cramer points to several market positives that could spark a sustained rally

There are signs of relief for stocks that could individually, or together, result in a sustained rally, CNBC’s Jim Cramer said Wednesday, as Russia’s invasion of Ukraine and soaring inflation continue to roil markets.

“You do not need the whole parade of positives to play out, because we only have so many stocks that are in bear market mode,” the “Mad Money” host said. “That’s what matters. In fact, you only need one or two positives to ignite a sustained rally. If we get more, with this level of negativity, the market could be like a coiled spring.”

Cramer referred to several “positives” in his analysis, including Federal Reserve Chairman Jerome Powell’s statement on Wednesday that he expects to institute quarter-percentage-point rate increases, but that the Fed will be monitoring Russia’s moves.

Other positives include a healthy consumer, evidenced by better-than-expected fourth-quarter results from retailers including Walmart and Nordstrom, Cramer said. Pandemic restrictions that are expected to loosen in both China and the United States are also leading to “very visible stocks that are humming,” he added.

Wednesday marked yet another turbulent day on Wall Street. The Dow Jones Industrial Average rose around 1.79%, while the S&P 500 gained 1.86%. The Nasdaq Composite increased 1.62%. The broad rally reversed losses from Tuesday’s trading session, even as oil prices continue to climb.

Cramer said that the market’s resilience is indicative of a possible rally.

“One thing’s for certain: if a market rallies when nothing seems good … that means there’s something good lurking over the horizon, it’s just that we haven’t recognized or factored it in yet,” he said.