There is nothing to do in a market like this but to stand aside where possible and not to panic as all seems to be falling around you.

fundamentals are still intact and long term nothing has changed interms of long term trend at this point.

NASDAQs took the biggest percentage hit at this point, but they really didn't participate in the last selloff, so it is just profit taking setting in and nervousness as companies like CSCO come out with good earnings, but hedge their bets on comments for the next quarter. These day, comments by CEOs have to remain conservative in light of shareholder suits of past years for "overstating" prospective earnings.

Is a general slowdown underway?...Of course. Is it a turn to a depressive market?...Absolutely not.

Remember, almost 79% of companies came in meeting or beating expectations. and the NAZ tech index was up by 28% for the year just a few scant weeks ago. A normal 10% correction would bring the NDX down to 2014. It's at 2081 as I right this and has just crossed the 50 day moving average, (a "normal" area of consolidation).

If not invested, wait for the bounce which hopefully will be set by a key reversal day, setting us up for the inevitable year end rally. Retracements and pullbacks are a necessary evil of all strong markets and are not to be feared, but rather capitalized upon.

I REPEAT THIS COMMENTARY EVERYTIME WE HAVE A PULLBACK/CORRECTION JUST TO MAINTAIN YOUR RESOLVE.....
Why do we need these declines at all? The markets are driven by supply and demand and when one or the other gets our of whack there is a natural movement back to equilibrium, just like a stretched rubber band or a spring.

Retracements are a way for buyers to have more stock available at more attractive prices. Those guys who take profits at the top of these extended moves provide this liquidity as the price drops. At some point buyers who have been waiting by the sidelines with cash in hand can't resist any longer, snapping up those shares, thus driving prices back up unti they are into overbought territory once again.

The ideal is a stair step pattern off of the Fibonacci's. This is the reason that markets never go straight up.

WHAT IT IS CALLED IS OPPORTUNITY!!!
Markets have two ways of working off gains after long climbs, (or descents). They can either pull back or consolidate sideways. For the MOST part we have seen a sideways consolidations. Pullbacks and consolidations are a good thing. They chase out the weak sisters who panic out of the markets and make more stock available at a lower price for those investors and institutions who missed the boat and have been waiting for an opportunity to buy for the future.