Jim Cramer: is the bull resting or out the gate

Every bull market eventually comes to an end. The only question is, does the bull just slow down to catch its breath or come to an abrupt halt?

Cramer said the S&P Proprietary Oscillator, a paid metric he's relied on for years, is topping "10," an extremely overbought condition. That means that discipline is needed to start trimming positions and taking profits.

The bull may wind down slowly, for which everyone is hopeful, but there are a few trouble spots investors need to keep an eye on.

The first of which are the banks, with JPMorgan Chase (JPM) reporting Thursday, which would send the markets lower, or it could post earnings that are too strong, which would make the rest of the banks look weak and subsequently send the markets lower.

Finally, Cramer said the Federal Reserve might be an issue once again, as a few Fed governors are scheduled to speak in the coming days. If anyone mentions that Brexit isn't as bad as we had feared so interest rate hikes may still be in the cards, then look for our bull market to stop dead in its tracks.

Indexes reached serious levels of resistance - Dow Jones is at 18500, suggesting profit taking and new short positions. The short-term correction is highly probable and let's not forget that today is Friday and the weekly movement is long. Therefore we can see closing of the short-term weekly positions.

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