For example, the ProShares Short S&P500 (NYSEArca: SH) takes a simple inverse or -100% daily performance of the S&P 500 index. Alternatively, for the more aggressive trader, leveraged options include the ProShares UltraShort S&P500 ETF (NYSEArca: SDS), which tries to reflect the -2x or -200% daily performance of the S&P 500, the Direxion Daily S&P 500 Bear 3x Shares (NYSEArca: SPXS), which takes the -3x or -300% daily performance of the S&P 500, and ProShares UltraPro Short S&P 500 ETF (NYSEArca: SPXU), which also takes the -300% daily performance of the S&P 500.

“The good news is that we don’t think it will result in a new bear market, since our fundamental outlook remains firm,” Stovall said.

Specifically, Stovall pointed out that S&P Capital IQ projected third quarter 2018 earnings to be 21.3% year-over-year higher for the S&P 500. Ten of 11 sectors are expected to post increases with double-digit gains led by energy, financials and materials.

Year-to-date, the Financial Select Sector SPDR (NYSEArca: XLF) dipped 2.0%, Energy Select Sector SPDR (NYSEArca: XLE) rose 2.5% and Materials Select Sector SPDR (NYSEArca: XLB) declined 9.4%, compared to the S&P 500’s 6.6% advance.

For more information on the market sectors, visit our sector ETFs category.