Cramer said investors are right to worry that a new leg lower may have come to the markets. He said the leadership groups that led the rally off Dow 6,500, mainly technology, oil and the banks, are starting to break down, with bellwethers Apple (AAPL Quote) and Google (GOOG Quote) both down sharply, along with several key banks, and with oil unable to trend any higher.

Cramer said its no wonder that the defensive stocks, like Wal-Mart (WMT Quote), Coca-Cola (KO Quote) and Colgate-Palmolive (CL Quote) were higher today, as investors begin to lock in profits and start thinking defense.

He said that the 5% to 7% market correction he's been predicting may be at hand.

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