Source: https://mochatrade.com/learn/glossary/market-correction

# Market correction
URL: https://mochatrade.com/learn/glossary/market-correction
Last modified: 2026-10-17

A correction is a fall of 10% to 20% from a recent high, a convention, not a rule. Most start on [a rate repricing](https://mochatrade.com/learn/us-market-structure/how-the-fed-moves-markets) or [a guide that disappoints](https://mochatrade.com/learn/us-market-structure/us-earnings-explained), the [VIX rises into them](https://mochatrade.com/learn/start-here/how-to-read-us-market-news), and a correction can hide inside an index: in September 2026 [the equal-weight S&P was 5% off its peak while the index sat near a record](https://mochatrade.com/blog/mocha-markets-weekly-dec).

## Related terms

- QQQ ETF: https://mochatrade.com/learn/glossary/qqq-etf
- Magnificent 7: https://mochatrade.com/learn/glossary/magnificent-7
- Bull and bear market: https://mochatrade.com/learn/glossary/bull-and-bear-market
- Dividend ETF: https://mochatrade.com/learn/glossary/dividend-etf
- EPS: https://mochatrade.com/learn/glossary/eps
- Dot plot: https://mochatrade.com/learn/glossary/dot-plot