An asset is considered in a bear market when it declines by at last 20% from its peak. The Nasdaq Composite needs to close below 13,836.90 to reach correction territory, according to Dow Jones Market Data. The index last entered correction on March 8, 2021 and it exited correction on April 9, 2021.

Is a market correction coming 2021?

Since 1980, every calendar year has had an intra-year drawdown that averages about 13 percent. We have not had a drawdown greater than 5 percent in 2021 so while it is hard to predict, it would be a natural event to see a correction of 10 percent in the coming months.

How long will Nasdaq correction last?

A correction is usually a short-term move, lasting for a few weeks to a few months, says Ed Canty, CFP, a financial planner with CFM Tax & Investment Advisors. Since World War II, S&P 500 corrections have taken four months on average to rise to their former highs. “They're never the same,” says Canty.