Well, we knew that eventually there would have to be an adjustment or correction.

At this time, I am unable to make a prediction as to its extent. However, a common retracement, the Fibonacci Sequence, often provides an accurate line of reference. The assumption is that the market will correct 50% of the distance from a closing low to a closing high. And as mentioned, using this method on the S&P 500 yields a downside target of about 1,950, which is 4.5% below Thursday's close.

But there are likely to be many stops along the way and plenty of opportunities for profitable trades.