'Fast Money' Recap: A Shallow Correction?

The markets were mixed Wednesday as President Obama unveiled sweeping regulatory changes for the financial industry.

The Dow Jones Industrial Average fell 7.49, or 0.09%, to 8,497.18, while the S&P 500 lost 1.26, or 0.14%, to 910.71. The Nasdaq added 11.88, or 0.66%, to 1,808.06.

Guy Adami said on CNBC's "Fast Money" TV show that the market now is trending lower after pushing the 950 level. He said that trend would continue for awhile and that it would be a mistake for people to wait and buy on dips. "That's not the way to go now," he said.

Joe Terranova agreed, saying the market is "clearly on the defensive" and predicting a "shallow" correction.

Tim Seymour, though, said the market is doing fine in the pullback after digesting "a ton of supply and a ton of uncertainty."

With the banking stocks down today, Adami said he would probably not short Wells Fargo (WFC Quote). Jon Najarian said the downward pressure on Wells Fargo could push the stock, which closed at $23.09, to $20.

With the latest report showing a decline in consumer prices, Lee asked the panel if deflation poses a threat to the economy. Terranova warned that inflation can spike quickly. He said that threat of inflation is what has driven energy and commodity names higher.

Commodities tumbled today, with the ag trade getting hit hard. Adami said stocks such as Potash(POT Quote), down 11% today, and Mosaic(MOS Quote), down 9.35%, retreated because they had been way ahead of themselves.