The mechanism of the stock market is not working, CNBC's Jim Cramer said Friday.
"We are paying far less for earnings than we were willing to pay just a few months ago, particularly for high-growth companies. This is a sign that the market attacks one area after another, after another," Cramer said on "Squawk on the Street."
Major stock indexes opened lower Friday, falling more than 1 percent after nonfarm payrolls rose less than expected in January. At one point, the telecom sector was the only one trending higher, as shares of companies from media to technology hit lows. The indexes were all down more than 1 percent midafternoon Friday.
There is not enough money going into one sector without leaving another sector, Cramer added. One example? Shares of metals manufacturer Alcoa and Freeport-McMoRan popped Thursday as money cycled back into the commodity sector.
Cramer said part of the problem is people are drawn to the cheapest stocks for fear of getting hurt.
"On any given day, if you owned Alcoa, you'd say, 'What is Cramer talking about? We had a great day,'" he said. "But its a rolling bear market, through sectors."
On Friday, the technology and biotech sector were the latest to feel the pain as shares of companies like LinkedIn were pummeled.
"We're in a bear market — we can't get away from it," Cramer said.