The stock market looks a bit wobbly. After reaching a new record high on Oct. 6, the S&P 500 index (SNPINDEX: ^GSPC) has declined by about 2.5% since then (as of this writing). On the one hand, a 2.5% drop in the S&P 500 can be unnerving to some investors. It might be a sign of economic trouble ahead. What if the stock market plunges even further into a 10% correction or a 20% bear market? On the other hand, many investors might see a 2.5% price decline in the S&P 500 as a sign that "stocks are on sale" and that it's time to buy more shares of S&P 500 exchange-traded funds (ETFs). This is called "buying the dip" -- investing more money in the stock market when the overall market has "dipped" to lower levels.
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