While there’s no universally accepted bear market definition, it’s often posited that a 20% drop in a commodity or security places it in bear market territory.

However, the Wall Street Journal Almanac offers a bear market definition that includes additional criteria.

• The DJIA drops 30% after 50 days
• The DJIA drops 13% after 145 days
• The Value Line Composite undergoes a 30% drop

Both definitions attempt to place a numerical measurement to recognize the difference between a bear market and a correction.  In general, a bear market is a lengthy period of falling prices and investor sentiment. A market correction is normally short and immediately followed by a resumption of an up trend.