While the market has fallen 9% from its April highs, Mad Money host Jim Cramer believes the worst is over.

The financial reform bill appears set to pass. While the bill itself may not be entirely satisfactory to Wall Street, at least the market will not longer be weighed down by uncertainty.

The debt crisis in Europe appears to be contained. Just a month ago, Banco Santander (STD: 8.75 +1.86%) was trading at a 52-week low, but has since jumped 50%.

It seems that the only remaining obstacles left to address are the Gulf oil spill and unemployment. Fortunately, it seems as though BP (BP: 46.97 +0.79%) is nearing a solution to stop the oil spill. Of course it will take some time before the labor markets return to full strength.

Overall Cramer is very optimistic and he feels that we have already experienced the market lows for this year.

The financial reform bill has certainly caused some consternation among the financial stocks. Wall Street always hates uncertainty and the ambiguity of the 2,000 pages of the financial reform bill has caused plenty of it.

Yesterday, the Dow close down 268 points in what Jim Cramer described as a “horrible, stinking bad day” that was reminiscent of “Stalingrad or Verdun.” Well, maybe not quite that bad.

After looking at the carnage of the financial sector there is one stock that Cramer feels offers investors lots of upside.

Cramer describes Citigroup (C: 34.23 +3.51%) as a “pitiful giant”. The stock has suffered from a mishandled attempt by the Treasury to sell their stake in Citi. These strong selling pressures have pushed Citi’s stock price down and there’s more still to come.

However, on a technical basis it appears that Citi is oversold. The Street.com technical analyst Tim Collins believes that the current prices provide a good entry point. He predicts that the stock could rise to $4.60 – $5.00 in the short term.

Cramer is even more positive on the fundamentals. He has faith in CEO Vikram Pandit and likes the firm’s mix of domestic and international business. Most importantly, Cramer believes that Citi has little exposure to housing which is once again become a huge problem area.

Cramer set a $12 price target for Citigroup over the long term. He recommends that investors buy Citi at its current levels.