Cramer's 'Mad Money' Recap: Going Over the Cliff

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NEW YORK ( TheStreet) -- The fiscal battle in Washington is playing out like the James Dean film "Rebel Without a Cause," with all of us caught in a high-speed game of chicken and about to go over the cliff, Cramer told "Mad Money" viewers Thursday.

CEOs, including many who didn't vote for President Obama, have been going to the White House lately and saying that they, the 2%, would accept a tax hike if it would lead to a compromise, Cramer said.

But they've been had. President Obama was re-elected and Cramer noted the feedback he's been getting indicates the CEOs' offer meant nothing. The CEOs figured the president wrong, and we're not much closer to compromise than before.

Cramer said the President's position seems to be "my way or the highway" but it's actually "my way or the cliff's way."

"What worries me most about the declines is that the market is realizing the President might get his way," Cramer said. That would mean higher taxes and little in the way of spending cuts.

"We have to hope that history isn't repeating itself to go down the path of the pre-debt ceiling debacle or the TARP debacle before we get crushed and then get the deal," Cramer said.

He explained, "If you're a member of the business community who thought compromise was in the air, the only thing that turned out to be in the air was you. In your car. Going over the cliff, without wings. Without a parachute and with a full tank of soon-to-explode octane," a la "Rebel Without a Cause."

Off the Charts

Are technical charts stronger than the fiscal cliff? No, Cramer said. But colleague Carolyn Boroden has been "eerily prescient" is her projections, based on Fibonacci ratios, on where the S&P 500 is heading.

She was right about the recent rally, Cramer said, and now that the markets have fallen after steady advances, Boroden says it is all about jumping hurdles.

The S&P has jumped its previous resistance ceiling of 1388 but now the next resistance ceiling is between 1436 and 1446. The S&P closed at 1419 Thursday.

But there is also a support floor of 1414, which is "just below where the S&P went out," Cramer noted.

Even in today's ugly market, "the floor held," Cramer said. Boroden's new support point is 1398, and Cramer said that "if we go below that we'll really be in a house of pain."

She thinks the S&P can rally and also sees the Dow Jones Industrial Average going to 13985 and the Nasdaq up to 2982. Cramer said he agrees with Boroden -- be cautious, wary and opportunistic.

Mind the Gap

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