NEW YORK (TheStreet) -- The S&P 500 dropped 1.25% and the Nasdaq fell 2.60% on Friday.
On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, said the S&P 500 had a reversal day, which could signal that more downside is ahead. However, he argued that investors have seen similar price action so far this year that has resulted in new highs for the index.
Steve Grasso, director of institutional sales at Stuart Frankel, also questioned if the market was faking out investors and would soon make new highs. He suggested investors wait to buy stocks until the S&P 500 breaks above 1,900.
Tim Seymour, managing partner of Triogem Asset Management, pointed out the Nasdaq broke below its 100-day moving average for the first time since June. He added that pullbacks are okay and that value stocks still appear attractive.
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Brian Kelly, founder of Brian Kelly Capital, took profits in a number of stocks, including Microsoft (MSFT), Advanced Micro Devices (AMD), Cisco Systems (CSCO), and Consol Energy (CNX) while booking a loss in Facebook (FB).
Grasso said value technology stocks are acting as a "shelter" for investors. He added that people are also buying energy stocks.
Kelly suggested that investors could short-sell financial stocks via the Financial Select Sector SPDR ETF (XLF).
Grasso was a buyer of KB Home (KBH), which has solid growth out of Texas and California.
Adami said PayChex (PAYX) should do well if the broader market doesn't continue to pull back.
Seymour said he likes SolarCity (SCTY) near $55. He was a seller of gold.
Kara Swisher, co-executive editor at Re/Code, was a guest on the show. She said the anonymous services business -- like SnapChat and Secret -- is growing rather quickly, especially among the younger generation.