“A correction is any move which is against the prevailing trend, regardless of magnitude…Let go of the silly 10% notion.”
— Tom McClellan, @McClellanOsc
Yesterday afternoon, a notification popped up on my phone. It was from a financial media outlet reporting the NASDAQ dropped more than 1% on the day to enter “correction territory,” as regulation fears battered big Tech.
Such reporting is a pet peeve I share with market technician Tom McClellan. If the current market’s primary trend is up, the correction began just over a month ago. If the prevailing trend is now down, a coming rebound will represent the correction in price ahead of a move to lower lows.
I may be a stickler about it, but you should have the correct understanding of corrections.