'Fast Money' Recap: Oil Sell-Off Worries

The markets dipped Wednesday snapping a four-day winning streak.

The Dow Jones Industrial Average fell 65.53, or 0.75%, to 8,675.24, while the S&P 500 dropped 12.98, or 1.37%, to 931.76. The Nasdaq lost 16.88, or 0.59%, to 1,825.92.

Guy Adami said on CNBC's "Fast Money" TV show that he believes the market is heading lower after the S&P failed to stay above its 200-day moving average for more than a day.

Tim Seymour was of the opposite opinion. He said people who were euphoric on Monday should be euphoric today. "Nothing has changed," he said, adding the market didn't trade that badly today.

Pete Najarian said the market was in an overbought condition after the big rally. He said the financials have been flat since May. He said volatility was "green" all day and that he would "buy America" including stocks such as Visa (V Quote), McDonald's(MCD Quote) and Wal-Mart(WMT Quote).

Adami said there was a sharp sell-off in oil and wouldn't be surprised if it drops to $60 a barrel, dragging the S&P with it. Najarian added that pullback will help the financials if money flows back from oil to them.

Seymour said Treasuries markets are rallying. He said rates are heading down because central banks have said they are going to buy Treasuries and U.S.-dollar denominated assets.

Melissa Lee, the moderator of the show, brought on Bill Perkins, a hedge fund energy trader, to talk about his short position on natural gas. He said natural gas will make "a lot of widows" if investors don't pay attention to the fundamentals, which show an "overflow in storage."