But some market watchers believe sentiment has simply turned too negative.
"It feels like someone called fire in a crowded theater," consummate bull and Fundstrat Global Advisors founder Tom Lee recently told CNBC's "Fast Money."
Lee said the S&P 500 can still hit his target of 2,325, predicting it would outperform global indexes in a seasonally strong period. He also sees the dollar providing a tailwind as its rise moderates, and said weakness in China won't necessarily spill over into U.S. markets, citing the example of Japan's impact — or lack thereof — in 1989.
Concerns over China's slowing growth — and the government's ability to intervene — August's sell-off.
Brian Belski at BMO Capital Markets told CNBC's "Power Lunch" on Monday agreed that domestic growth will offset overseas weakness.
He is sticking to his call that the S&P will end the year at 2,250. Belski said a stock market rally could be in the cards as third-quarter earnings surprise to the upside.
Read MoreIs there an earnings recession looming?
Analysts expect third-quarter earnings to fall 5 percent from last year, according to FactSet.
Then there's the camp that says the market still has room to run — just not as much room as previously expected.