Market bottomed in March 2009 . Since then it was going up for 6 years with some minor correction. So at some stage it was due for correction. We are in the midst of one of them.
Breadth on T2107 peaked in early 2014 and since then each successive rally was with less number of stocks leading the advance. December bounce was on very weak breadth and there were signs of trouble as it starts fading.
Corrections wipe out the excesses of bull market. During bull move good and ugly both rally. So a correction wipes out some stocks. But there is always something new that comes in and eventually money starts to move in to those stocks.
As of now real panic is yet to set in. Margin calls hitting people and longs throwing in towel with big spike in fear are required for a bottom. If selling persists for few days to weeks then that will set the market for another rebound.
Periods like these are good time to think about putting in place market timing models so that you don't get wiped out in these kind of corrections.