Despite all of the market spasms amid fears of slowing global growth, stocks are on pace for a weekly gain, but that's not enough to think the worst is behind us, strategist Jim Paulsen said Friday.
"The thing that really brought this market down was basically a market that was overvalued, that developed investor sentiment that became too complacent," he told CNBC's "Squawk on the Street." "If we just go right back up to highs I don't think we've done anything."
While the major indexes are still far from their highs, a late rally Thursday took all three from correction territory. But without seeing complete capitulation and flights to gold, the dollar and quality Treasury bonds, Paulsen was hesitant to call a bottom.
"We haven't seen [that] yet," the chief investment strategist for Wells Capital Management said, adding it might take the S&P falling to 1,800 to bring about a flight to safety. "Maybe that's a sustained base that we can make a run from, so I don't think it's over."