NEW YORK (TheStreet) -- The S&P 500 erased its prior two-day rally, falling 2.09% on Thursday.
On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, pointed out that there was a large sell order in the S&P 500 futures market around 3:30 a.m. EDT. He thinks this may have fueled Thursday's selloff.
Steve Grasso, director of institutional sales at Stuart Frankel, suggested the selloff could've been caused by a market unable to make new highs, causing investors to take some profits in their winning stocks.
Tim Seymour, managing partner of Triogem Asset Management, said the global economy still looks good. He added that investors continue to rotate out of highly valued stocks and into low-value stocks.
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Guy Adami, managing director of stockmonster.com, said one of two possible scenarios that will play out: Either the S&P 500 will "tread water" for several weeks and sell off into the end of the month or the S&P 500 will sell off hard over the next week down to roughly 1,765 before rallying for the rest of the month.
Grasso pointed out the S&P 500 finally pulled back to the 100-day simple moving average. He added that if the market can hold near 1,800, he would be a buyer.
Dennis Gartman, editor and publisher of The Gartman Letter, said he remains "neutral" on U.S. equities at current levels. He added he would not consider selling short the broader market and reminded investors it's still a bull market despite the pullback. He thinks the S&P 500 could pull back to the 200-day simple moving average near 1,765, representing a 7.5% pullback from the highs. He also likes gold at current levels.
Grasso is a waiting for a deeper pullback to start buying stocks he likes.