Are we already in a bear market?

Jay Woods talks bear markets with Chris Versace in the second episode of TheStreet Stocks & Markets podcast.

Transcript

00:00We are not technically in a bear market.

00:02We haven't closed 20% from the high,

00:04but you and I have lived through enough of these to know

00:06that when 65% of the S&P 500 has had a drawdown of 20%,

00:10it's a bear market.

00:11When your leadership, technology, consumer discretionary, down 20%,

00:15the NASDAQ down 20%, this is a bear market.

00:18It may not be labeled in history if we don't go lower,

00:21but you know it's a bear market, and we're seeing some crazy action.

00:25And you see most of the volatile times occur in bear market scenarios

00:30when stocks are oversold,

00:31when stocks are below their 200-day moving average,

00:33you get what I call rip-your-face-off rallies.

00:36And we saw a couple of those, and we may have a few more in store.