Recent volatility in the S&P 500 has led many investors to question whether the market is weakening. A closer look tells a different story. This one-month view of SPY highlights a coiling market, where price is consolidating after strength and volatility is compressing near recent highs. Understanding what this type of market behavior signals can help long-term investors stay disciplined, avoid emotional decisions, and remain aligned with their broader investment strategy.

The longest government shutdown in U.S. history and a broad market pullback have shaken investor confidence, but both are temporary. As defensive sectors lead and AI stocks sell off, long-term investors are being handed a rare opportunity. Smaller innovators like Rigetti, SoundHound, and Palantir are down sharply from their highs—yet the AI story is far from over.

In times of market turmoil, fear can drive investors to sell low—but this article makes the case that staying calm and buying when prices fall often leads to stronger long-term results. You can’t predict the bottom, but those who continue to invest through the drops—while focused on fundamentals—are usually the ones who benefit when the market recovers.