Market is in correction mode. It has not yet corrected much but if the selling continues then we might have bigger down move.
How does market recovers from such corrections:
The above chart shows 2010 correction and subsequent recovery. It took some months for market to put in bottom.
The two charts below show bottoms in 2011 and 2012. 2012 correction was shallow correction.
No matter how the market action develops all that matters is setups. If setup sow good buy or sell candidate , you buy or sell.