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Market Extra: Stop saying the Dow is moving in and out of correction! That is not how stock-market moves work

The Dow Jones Industrial Average is in correction territory, a move that took effect on Feb. 8 when the blue-chip gauge closed 10.4% below its late-January high.

Market technicians generally define a correction as a decline of 10% to up to 20% from a recent peak in an asset. But once that security slips in to correction phase, that trend is viewed as in force until it trades above its previous peak.

Read:History suggests the correction isn’t near over, as this chart demonstrates

In the case of the Dow, its previous high was Jan. 26 when it closed at a record of 26,616.71.

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