The market is getting ugly.
Stocks accelerated their declines on Wednesday with the S&P 500 dropping more than 3 percent at one point and falling to its lowest level since February 2014. The large-cap index is now down more than 10 percent this year, with a shocking 88 percent of its components in a correction or worse.
"A bull is defined by two things, a succession of peaks and troughs that are higher than the preceding ones … [and] a period of broad strength where most sectors are participating," Carter Worth told this week. "Both of which we don't have right now."
Instead, Worth characterizes the current climate as classic bear market behavior, and he drew a comparison to past instances where a break below trend led to dire losses.
He pointed to the bear market of 1973-74, where stocks fell more than 40 percent after breaking trend, as well as the tech bubble, which saw a more than 30 percent drop in the market, and most recently, the financial crisis, when the market tanked 50 percent from its high (see charts below).
Jr. Trader Ivaylo Atanasov
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