Corrections vs. Bear Markets vs. Crashes
A correction is technically considered when markets fall (-10%) from its highs for at least 60-days.
When markets fall (-20%) or more for at least 60-days, then a bear market has arrived.
A crash happens when markets collapse abruptly and extremely in a small period of time. While there aren’t any specific definitions of what percentage drop constitutes a crash, one can assume a (-20%) or more drop intraday on the benchmarks would be considered a crash. There are trading circuit breakers/trading curbs in place to soften the blow where trading is halted for periods of time. These can also backfire as selling pressure builds during the halt and is displayed when the halt is lifted.
