• Bull market correctionReversed for bear market correction.
  • Support below
  • Fibonacci retracement levels of prior uptrend
  • Bottoming price action
  • Positive divergence — index vs. indicators
  • Positive divergence — index vs. internals
  • Bullish candlestick pattern or western reversal bar
  • Notable change in scan hits
  • Break of resistance (downward sloping) trendline

Classifying Bull Market Declines

• 1 to 3% – Market pullback
• 3 to 5% – Minor correction
• 5 to 8% – Standard correction
• 8 to 12% – Deep correction
• 12 to 16% – Very deep correction
• 16 to 20% – Minor bear market
• More than 20% – Bear market