<center>![](https://cdn.steemitimages.com/DQmcsRXEYgcLAnu6LmCFSAes11fxNKgcCLvCLQPDLrDYPmv/image.png)</center>

<center>[Source Image](https://thebrownreport.com/us-stock-market-review-sept-2015/)</center>

There is no need to panic yet, because the ceiling, not the sky is falling, despite what we witnessed this week in the equity markets. 
 
>The Nasdaq Composite Index —populated by some of the most richly valued technology and internet-related stocks—put in its worst weekly decline since March 23, dropping 3.2%, while the Dow Jones Industrial Average logged its steepest two-session fall since June 19 and S&P 500index suffered its ugliest back-to-back percentage loss since May 29, according to Dow Jones Market Data.

<center>[Source]( https://www.barrons.com/articles/columbus-day-stock-market-1538841700)</center>

We have to put things in perspective:  

1.The S&P 500 Index, the bellweather rose 7.2% during the third quarter, its biggest quarterly gain since the fourth quarter of 2013.

<center>![](https://cdn.steemitimages.com/DQmfENBCudv58izGnayGvWZ1rD3KDBNPP7dTb49fgCbajHd/image.png)</center>

<center>[Source Image](https://www.bloomberg.com/news/articles/2018-09-27/asia-stocks-point-to-gains-dollar-rises-yen-down-markets-wrap)</center>

2.Although showing some divergence, the DOW finally, I mean finally joined the party, making new all time highs in Sept. after lagging all the indices since Feb. 

![](https://cdn.steemitimages.com/DQmYFKPcGrggX7aX5oa3KCydKrVWnyJshBtxHxvTPnrJ9Tt/image.png)

<center>[The Dow Finally Joins The Party]( https://steemit.com/money/@rollandthomas/the-dow-finally-joins-the-party)</center>

3.Yes, the Russell 2000 is diverging from the big caps, down 4 out 5 days to start October, dropped below it’s July lows and breached the daily demand at 1640,

![](https://cdn.steemitimages.com/DQmamXLaQwbEH3tQXbKHNuWiSPhRf15RET5tyoTi83cn9e5/image.png)

but the trend is clearly still up. 

![](https://cdn.steemitimages.com/DQmbJQQmxSHn46S3ao7v7WjEDLaa5aqMCm1vxpbkkFd7zjS/image.png)


With that said, lets examine the S&P 500 because I think it's the bellweather when it comes the US stock market equities and the economy in general. The S&P 500  includes 500 of the largest companies whose stocks trade on either the NYSE or NASDAQ.

NOTE:A bellwether is a security or indicator that signals the market's direction.

Price was only down 2.4% this past week.

![](https://cdn.steemitimages.com/DQmY6eHoZK4VbkiAdYp6Npnc5UPa1exgHxDXw4PSz2VhwSH/image.png)

The previous high established in January held as support this past week.

![](https://cdn.steemitimages.com/DQmZxjPX4RjEwW3wSP3GQAM7syMJiqxbzBNUuXGTCs1ZZxc/image.png)

But most importantly, no daily demand zones have been broken yet. 

![](https://cdn.steemitimages.com/DQmYxXCVVhcUz3vKaKsmwFntkgzwKSZFY161mFD9n8XSLHH/image.png)

As you can see, there is no need to panic yet because only the ceiling is falling.  Could the Markets being just pulling back before resuming its upward trend?

<center>![](https://cdn.steemitimages.com/DQmRbduhcx8JzKwkHSf5qqfanKdLHphG9WCJxusjTSL8j5N/image.png)</center>

However, what I do know is the chart on the S&P 500 suggests, if price breaks the 2nd demand zone at $2800, it will be time to re-evaluate your portfolio from continued downside risk. 
 
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

![upvote banner3.gif](https://steemitimages.com/DQmRhDtjokAZnGKi4QwheqksKTFo6m4fsjMYsNNrsitC1xk/upvote%20banner3.gif)

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