Legal Definitions - technical adjustment

Technical adjustment refers to a short-term change in the overall trend of stock market prices. This change can be either upward or downward and is usually brief in nature. For example, during a bear market, there may be a short rally where prices increase before continuing to decline.

Another example of a technical adjustment could be a sudden drop in prices during a bull market, followed by a quick recovery. These adjustments are often caused by technical factors such as changes in trading volume or market sentiment, rather than fundamental factors such as company earnings or economic indicators.

Overall, technical adjustments are a normal part of the stock market cycle and can provide opportunities for investors to buy or sell stocks at advantageous prices.