Whenever the next leg starts after this mild carnage, new leadership will emerge. The stocks which were leading the rally are toast now. They will take lot of time to put together another rally. Those which have gone below 25% of their recent high will probably take months to repair the damage. Most will not come back.
After every correction, new leadership emerges silently. Airlines took off in early part of the rally, solar plays followed, then after a correction agricultural related industry took off. Which was followed by shipping. So the next phase will bring new leaders. One has to quickly spot the emerging leadership and capitalize. Most speculators make the mistake of clinging on to old leaders are expecting them to start rallying again. No amount of Viagra can get those things moving again.
If you are following any of the method like Double Trouble, IBD 200 or Multi Year Leaders, all these list will undergo lot of churn with new leaders making their way to the list. Episodic Pivots list is the list to keep a very close eye on after such corrections. New leaders often burst out with major price and volume moves. EP captures them all. Another good place to find emerging leadership is by going through the stocks up 25% or more in month.
Time to start building buy lists is now. Such panicky action often leads to sellers exhaustion and markets like these can turn on dime and lead to moonshot rallies.