CNBC's Jim Cramer advised investors on Friday not to over-react to September's stock market downward movement.
"The market looks bad. That's fine," Cramer said on Squawk on the Street. "What happens, I think, we're looking for a floor again."
Cramer's comments came shortly after Friday's mixed opening.
At the close of trading on Thursday, with four trading days a month remaining, the Dow Jones Industrial Average fell 5.7% in September. The S&P 500 was down more than 7% and the Nasdaq was down 9.4% over the month.
Cramer reminded investors that September is a historically difficult month for Wall Street. "The last 10 days in September have been bad historically. This year it will get worse."
According to CFRA research, the S&P 500 has seen a monthly average decline of 0.5% since World War II.
The tech-led swooning in September isn't necessarily a bad thing, however, the Mad Money host said. In contrast, he sees this as a positive sign given comparisons over the past few months, which have compared the stock market's robust rally from the coronavirus-era lows in late March to the dot-com bubble in the late 1990s and early 2000s.
"This is really important to the people who got very negative. It takes 1999 off the table," Cramer said of the September pullback that was particularly pronounced in many of the mega-cap tech stocks like Apple that helped propel the Nasdaq hit a number of record highs this summer. Apple fell more than 19% at close of trading on Thursday from its record high on September 1.
"We never had that [drop] in the year before the Nasdaq crash," said Cramer, who was skeptical of drawing parallels between the coronavirus rally and the 1999 bubble. At that time, the Nasdaq rose fairly significantly in late 1999 to its then high of 5,132 on March 10, 2000. The Nasdaq bankruptcy lasted more than two and a half years, with losses of over 78%, before the index reached a level then. Bottom of 1,108 on October 10, 2002.
In July, Cramer said some of the stock moves were "insane". But he then added, "Can we please stop comparing it to 1999? Because in 1999, a lot of really bad companies got big caps. Here, a lot of incredibly large companies are gaining market cap at a pace that you can get." I have to give them a ticket. "
In fact, Cramer has urged investors to take advantage of the rewards and buy the drop after some of these big tech names pulled out – basically they were finally given that parking ticket. "As someone who turned bearish on these tech stocks weeks ago because I felt we were getting greedy … I say the tech downturn now seems like an opportunity," he said on Monday .