"The drop in the markets on Friday, February 2, 2018 appears to be the start of the long-awaited correction, but this will likely pan out with some bigger daily moves in both directions, as the possible change in the short-term market direction is also seeing an increase in volatility. Friday’s action was extreme for a daily move and what follows can often be a snap-back rally of an amount that may make the correction appear to be over. But what we really see developing here is a potential change in the previous bullish trend to more of a range for the next several months, with the markets now still up near the high end of the range. The largest correction risk could be those stocks that are the most extended above their support levels, such as many of the Defense and Technology stocks, while the higher-yield stocks that have already pulled back, along with Consumer Staples, Energy, and Natural Resources, appear to be positioned to hold up better during any further overall market weakness."

- Bob Dickey, Technical Strategist, RBC Wealth Management U.S.