Cramer's 'Mad Money' Recap: It's Time to Pause

There are too many negatives in the markets to still be buying at these levels, and investors need to be extra cautious until the many positives come into better focus, he said.

Cramer said that going into the weekend he expects many money managers will be cashing out on worries that news out of Europe will sour the markets over the weekend. He said this will likely lead to additional declines beyond today's weak close.

Additionally, Cramer said that he expects President Obama, who has been silent on the sequester of late, to begin speaking again next week as the spending cuts take hold. Add to that weak earnings from FedEx , Caterpillar and Oracle , a stock Cramer owns for his charitable trust, Action Alerts PLUS , and it's looking like a tough couple of days for the markets.

Cramer said investors shouldn't become too pessimistic on the markets, however, as there are still many things that can go right. He said a grand bargain could be reached by Congress on spending cuts, or the Europeans could conceive of a better bailout plan for Cyprus. If either of those two were to happen, he said, anyone short or out of the markets would be left behind in the blink of an eye.

Cramer said that there's also the possibility of good news stemming from China as well as continued positive news from the U.S. retail and housing sectors. Those events could also spur the markets higher.

But with the negatives coming into focus and the positives still only possibilities, Cramer said investors need to get cautious and not buy anything at current levels.