How To Describe Corrections In The US Equity Market by Anatoly B. Schmidt, PhD
Even when you assign a fairly concrete definition to the term “correction” or “bear market,” it’s still not easy to know at what point one began. Here is one proposed solution.
Corrections in the US equity market are usually defined as declines of the S&P 500 index by more than 10% (but less than 20%) from its most recent peak. Corrections exceeding 20% are usually considered bear markets ...