The second caller’s top stocks included these names: United Technologies Corporation (NYSE:UTX), Pfizer Inc. (NYSE:PFE), Verizon Communications Inc. (NYSE:VZ), Yum! Brands, Inc. (NYSE:YUM) and Microsoft Corporation (NASDAQ:MSFT). Cramer said this portfolio was beautifully diversified.  Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Fitzpatrick said the S&P has confirmed a head and shoulders pattern on the weekly chart. This follows a massive 75% gain from the March lows. According to Fitzpatrick, the S&P 500 is now displaying a new potential downtrend as demonstrated by a tell-tale head pattern flanked by smaller shoulders on either side.

Now, the S&P is approaching the “neckline,” which is the lows of the head and both shoulders. Fitzpatirck thinks if the S&P drops through the neckline, the major average could plunge down to as low as 810, a 23% drop from current prices. However, he said if the S&P finds support off the neckline, the average is likely in the clear.

Cramer said the techincals of the market are flashing a warning sign. “The charts are terrible,”  said Cramer,  and the chart of the S&P 500 Index seems to be forming  a truly ominous pattern known as a head-and-shoulders formation.”

Cramer mentioned that he respects the power of technical analysis, and it’s self-fulling nature, but he’s a fundamentalist and is more concerned with the health of the companies that make up the S&P, not the overall average. He told viewers that the technicals could keep stocks from trading higher, but they can’t drive stocks much lower.

Cramer said he prefers stocks like Clorox Company (NYSE:CLX), Medco Health Solutions Inc. (NYSE:MHS), a stock he holds in his charitable trust, and favorite PepsiCo, Inc. (NYSE:PEP), after they reported their earnings. He said he also likes dividend raising stocks like Kinder Morgan Energy Partners LP (NYSE:KMP) and 3M Company (NYSE:MMM). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

He told another viewer that the stock performance of Clean Energy Fuels Corp. (NASDAQ:CLNE) is trading off of actions in Congress, and whether it passes a natural gas rebate or credit for truckers, and not by any technical analysis.

Lastly, Cramer told a viewer to review Baker Hughes Incorporated (NYSE:BHI) most recent conference call, which showed how bad the company is doing. He recommended buying Weatherford International Ltd. (NYSE:WFT), a stock he holds in his charitable trust, instead. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!