- A fall of 20% from a former peak is called a bear market, a decline of 10% is labeled a correction, and a smaller decline is called a market phase. Today, the three popular US stock market indices can each be labeled with a different name.
- No wonder there is confusion concerning the current state of the market and, to some extent, where it may go. Almost by definition, the greater the decline, the sooner a bottom is reached.
- The NASDAQ led both on the way up and down. The reason for this is the junior index having proportionally less passive (index) investors making specific stock judgements.
For further details see:
On The Way To The Bottom? - Weekly Blog # 730