Jhyalincha, 4% is a small drop compared to one day drop of 22% in 1987. Who knows stock market may crash like in 1929 recession where it lost 89%. The market can remain irrational for long. Regardless it seems like the onset of a bear market, market correction is an investment opportunity. But, i wonder why won't S&P500 test for lower 1300s before running up again!! If it fails to hold lower 1300s, expect another slide of about 200 points for the remainder year.