correction

Correction

A price reaction (usually negative) of at least 10% for a stock, bond, commodity, or index.

Notes:

A healthy market will correct from time to time.

See also: Bear Market, Bloodletting, Capitulation, Dead Cat Bounce, Falling Knife, Flight to Quality, Panic Selling, Retracement

---

Correction

Reverse movement, usually downward, in the price of an individual stock, bond, commodity, or index. If prices have been rising on the market as a whole, and then fall dramatically, this is known as a correction within an upward trend. Antithesis of a technical rally. See: Dip, break.

---

correction

A sharp, relatively short price decline that temporarily interrupts a persistent upward trend in the market or in the price of a stock.