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'Fast Money' Recap: Market Overreacts

Finerman said she was still in JPMorgan (JPM), adding she didn't think the European contagion would spread to the U.S.

Shifting briefly to the auto sector and a second-quarter profit warning from Ford (F), Seymour said the auto giant is seeing a weaker second half due in part to production constraints in fuel efficient vehicles.

Adami said BorgWarner (BWA) gave up the ghost after rising significantly earlier in the session. "It's hard to buy anything now."

Lee brought in Andy Busch, a BMC Global market strategist, to talk about a euro trade. He said Monday will be a key date because that's when the econfin ministers are supposed to come up with something to deal with Greece's debt problems. He said that plan is needed before the IMF can take any action.

He said the easy trade would be to sell the euro. He said Greece's problems can only be resolved through a default and restructuring of the debt.

Carter Worth, a chartologist with Oppenheimer Asset Management, had some hope for the markets. According to his reading of the charts, the markets appear to going through a normal correction and that it would be advantageous to be buying on weakness.

The panel tried to put together some indicators for the market selloff. Lee mentioned the Glencore IPO as representing the top for the commodities market and the Pandora IPO as a top for "new tech" enthusiasm.

Adami said he would throw in the financials and Research In Motion (RIMM) as indicators as well.

Seymour said it's impossible to use the IPOs as one-day barometers for the market's behavior.

For another view of the selloff, Lee brought in Scott O'Neil, president of who had a dire forecast of the slide. He pointed out several factors that led him to believe the decline will be prolonged. He said that there is too much selling into market; that 50% of the list of stocks that have done the best in the bull run have topped; that there is a group rotation to defensive names; and that stocks and indices are up on low-volume days and down on big-volume days.

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