'Fast Money' Recap: S&P Sinking to 850?

NEW YORK (TheStreet) -- The markets sagged again Tuesday as bank stocks were battered.

The Dow Jones Industrial Average dropped 185.68, or 1.96%, to 9310.60, and the S&P 500 fell 22.58, or 2.21%, to 998.04. The Nasdaq lost 40.17, or 2%, to 1968.89.

The Institute for Supply Management's manufacturing index exceeded expectations when it rose to 52.9, while the National Association of Realtors reported an uptick in pending home sales in July for the sixth consecutive month. That good news was offset by bank stocks, which were hard hit.

Guy Adami said on CNBC's "Fast Money" TV show that today's action is a prelude of a market that is heading down to 970, and possibly 905.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Tim Seymour agreed, saying the downward move is noteworthy because it happened on a day when the volume was large and the ISM manufacturing index exceeded expectations.

Joe Terranova said the market is headed for a pullback after failing to rally on good news.

Terranova also said another indicator that the market was heading down was Goldman Sachs(GS Quote), which was down 3.2% today. He considers Goldman the "best stock" and the "one that will tell you where the market is going."

Seymour said the markets reacted negatively to Wells Fargo's(WFC Quote) efforts to pay back the TARP it owes, and CIT Group(CIT Quote) noting it missed an interest payment.