The general market has now gone through a 5% correction in less than two weeks.

We haven’t seen a move like this since the March lows, so of course it feels uncomfortable. But so far, there is still no reason to believe this is anything more than a normal correction.

We’ve just been spoiled over the last few months. The market pretty much went straight up for weeks, and every small dip got bought quickly. After a period like that, even a normal pullback suddenly feels like something is wrong.

But these kinds of moves are normal.

In a typical year, you should expect a few 5% pullbacks and at least 1 larger correction of around 10%. Even in bull markets, stocks need time to cool down. They cannot move higher every week forever.

We’re now about 5% off the highs and at a key level above the 50d SMA. That would be important to hold, at least short term. So, this could be an interesting spot for the market to bounce from.

Of course, there is also the possibility that we go even lower and maybe even revisit the 200d SMA, which would be a 10% correction. That’s important to keep in mind to maintain mental flexibility. But this is the less likely scenario.

One of the most important things to do during a pullback is to build a focus list or watchlist.

The goal is to prepare. A pullback gives you a second chance to buy leading stocks you might have missed initially. It also helps you identify the next set of potential leaders. They fall less, hold key moving averages, recover faster, and show relative strength while the broader market is under pressure.

This is incredibly valuable because you already know which names you want to focus on, where they become actionable, and where your risk is defined.

Here’s how that would look in practice.

Start with stocks that already had a strong trend before the pullback. Then check which ones are still above important moving averages, which ones are holding prior breakout areas, and which ones are refusing to make new lows while the index is falling. Those stocks are showing relative strength. Relative strength is important because it shows institutional demand. If everything is selling off, funds have to clearly set their buy orders.

Then narrow the list. Focus on the best 10 to 20 names that fit your portfolio and your strategy. Look for companies with strong earnings growth, rising estimates, improving margins, major catalysts, and clear demand from institutions. The best setups usually combine both sides: a strong business and a strong chart.

So, here are a few names that stand out right now. Many of these names have been discussed before or have been on the leaderboard for a while.

Syntec Optics $OPTX

Still holding this position. Although it is certainly a more volatile name, it continues to build higher highs and higher lows even while the market corrects.

Cardinal Infrastructure $CDNL

This is also a good example of what to expect after a correction. First, it sold off. Then it based above the 50d SMA, and now it’s back at all-time highs while the market corrects.

Digital Ocean $DOCN

This was my favorite name to watch for agentic AI software a few months ago. It continues to perform very well, and there is no one willing to sell even during this correction. This kind of price action is exactly what you want to see from a potential leader.

Oscar Health $OSCR

We’ve also seen a rotation from tech to consumer staples and more defensive names. One of the most interesting names right now is Oscar Health. It has been building a base for 2 years and just broke out. As they say, the higher the base, the bigger the space.

Ambiq Micro $AMBQ

Ambiq Micro is a recent chip IPO focused on ultra-low-power semiconductors for edge AI devices. It makes chips that allow small battery-powered devices to run more intelligence locally, without draining the battery too quickly. It broke out of its IPO base and has been consolidating nicely since then. This is also a good example of what to expect of new names that IPO.

Sandisk $SNDK

This is the undisputed leader from both this year and last year, and it continues to power higher. Nobody is willing to sell.

Nebius $NBIS

The leader in AI compute right now. A very order pullback so far. After such a strong run, some digestion is normal.

Credo Technology $CRDO

I’ve highlighted Credo a few times already. And it’s another good example of stocks that just go through natural cycles.

There are plenty more the goal is to know if the price action is normal or abnormal.

Because the way a stock pulls back tells you a lot about the quality of demand behind it.

A normal pullback means the stock is digesting a strong move without real damage. It may drift lower, touch key moving averages, or move sideways for a while, but it does not collapse. Because large holders are not rushing to sell. They are still willing to hold through market weakness.

The strongest stocks often correct in a controlled way before moving higher again. They give back some gains, reset overbought conditions, build a new base, and then become actionable again once the market stabilizes.

The opposite is also important. If a leader suddenly breaks key levels on heavy volume, slices through moving averages, and cannot bounce while the market recovers, that is an early warning sign.

So watching whether the price action is normal helps you separate healthy digestion from real distribution.