In the crypto world an example of when the term was used A LOT
Bitcoin jumped from circa 3k to circa 20k in a few months… possibly driven on by the hopes and dreams of the masses thinking their money would just multiply…
At some point some people with lots of bitcoin or lots of people with some bitcoin decided they’d made gains and it was a safe time to sell and take their profits… this triggered a very quick down turn, so the masses followed and continued the selling and bitcoin was back to sub 5k…
So people would say the market corrected itself to a much more fathomable bitcoin price, not supported fully supported by the sheep
Now I have no idea if that’s the correct use for the term but it lines up with Wikipedia … and I’m one of the sheep
So I think what people are saying right now is that because the market is and has been for a while very bullish (throw some cash at Tesla or Apple and you’d expect it to go up) it mirrors an environment which could experience a correction … but as said before it’s hard to predict these things (well maybe not so much with the last bitcoin fall)
A market correction is a rapid change in the nominal price of a commodity, after a barrier to free trade has been removed and the free market establishes a new equilibrium price. It may also refer to several of these single-commodity corrections en masse, as a collective effect over several markets concurrently.