It’s been a rough October, with the stock market having one of its worst months in nearly a decade. In fact, at one point the S&P 500 and Nasdaq fell into a correction, the second of the year. Now stocks appear to be bouncing back nicely, with two solid days of gains.

Does this signal that the correction is over? Or merely a false bottom that will soon be broken as stocks resume their previous decline? Find out the three most important things investors need to know about this latest correction, including whether or not it’s actually over.

We’re Unlikely In A Bear Market

To understand whether or not stocks are done falling first it’s important to understand the different kinds of market downturns.

  • Pullback (5% to 9.9% decline from all-time high)
  • Correction (10% to 19.9% decline)
  • Bear market (20+% decline)

According to Sam Stovall from the American Association of Individual Investors, since WWII there have been 57 pullbacks:

  • On average one every six months
  • Average decline 7%
  • Average duration (peak to trough) 1 month
  • Average recovery (to new all-time high) 2 months

S&P 500 Corrections

9 "Must Own" Growth Stocks For 2019

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NYSE: DIS | Walt Disney Company (The) Common Stock News, Ratings, and Charts

Disney's (DIS) new live-action film, Aladdin, expected to make $80 million this weekend

The live-action “Aladdin” film starring Will Smith is expected to lead the box office over the Memorial Day holiday weekend.
NYSE: SQ | Square, Inc. Class A Common Stock News, Ratings, and Charts

Is Square (SQ) stock a good buy at this price level?

SQ stock now trades for just $65.
NYSE: F | Ford Motor Company Common Stock News, Ratings, and Charts

Is it possible Ford (F) would buy Tesla (TSLA)

Making a deal work would be a challenge.
NASDAQ: CVCO | Cavco Industries, Inc. News, Ratings, and Charts

Best & Worst Performing Stock Industries for May 24, 2019

Led by ticker CVCO, "Homebuilders" was our best performing stock industry of the day, with a 2.60% gain.
NYSE: EMES | Emerge Energy Services LP Common Units representing Limited Partner Interests News, Ratings, and Charts

Best & Worst Performing Small Cap Stocks for May 24, 2019

EMES leads the way today as the best performing small cap stock, closing up 76.47%.

Read More Stories