On CNBC's "Fast Money" TV show, Steve Grasso, director of institutional sales at Stuart Frankel, said investors didn't seem to be panicked when selling. He added that short-sellers were also covering, likely because of Friday's non-farm payrolls report. He said 1,910 should be support for the S&P 500.
Brian Kelly, founder of Brian Kelly Capital, said the employment results from the non-farm payrolls report needs to be very close to economists' expectations. Otherwise, it will likely add pressure to the selloff.
Dan Nathan, co-founder and editor of riskreversal.com, said the Russell 2000 has formed a bearish technical pattern known as a "double top." He added that it would be perfectly natural for the U.S. stock market to selloff 7% to 10%.
Guy Adami, managing director of stockmonster.com, said the iShares Russell 2000 ETF (IWM) seems poised to decline to $108. If it fails to find support at that level, it could drag the rest of the market lower.
Dennis Gartman, editor and publisher of The Gartman Letter, said the S&P 500 seems poised to decline to 1,875 or 1,860, the latter being the index's 200-day moving average. Nothing has fundamentally changed, he said, but investors are worried psychologically. He is still neutral on equities and suggested that WTI crude oil is headed lower.
If the non-farm payrolls results are better than expected, Adami said bonds are likely to to decline, while equities move higher. Kelly said both bonds and stocks seem poised to decline. Grasso said stocks should react positively to a better than expected result. Nathan argued that a good labor result is already priced into the market.
Nathan added that the PowerShares QQQ Trust ETF (QQQ) is a "dangerous asset" right now. He reasoned that 35% of the fund is comprised of four stocks -- Apple (AAPL), Google (GOOGL), Microsoft (MSFT) and Intel (INTC) -- that all have really positive sentiment. If that sentiment changes quickly, the ETF could selloff quickly.
Ben Kallo, senior research analyst at R.W. Baird, has a buy rating on shares of Tesla Motors (TSLA) with a $275 price target. He said the company reported a very good earnings result, beating on top and bottom line expectations.
However, guidance for the third quarter was a little below analysts' expectations. But, delivery expectations for next year of 100,000 units is vastly higher than everyone expected, Kallo said, which should outweigh the negative news about the third quarter. He is a buyer at current levels.
Nathan said Tesla will be a good stock to own for the long term, but it's too hard to buy near current levels. Adami said investors should either buy Tesla on a breakout over $230 or on a pullback to $185. Kelly said Tesla is hard to trade, but should be a solid long-term hold 10 years from now.
Adami said GoPro (GPRO) had "very strong" gross margins compared to year ago figures. He is a buyer on a pullback. Kelly is also a buy of GoPro, but in the low-$30s.
Nathan pointed out that the SPDR Homebuilders ETF (XHB) hit nine-month lows. The exchange-traded fund is not acting well, he said. Kelly added that the housing market will be under even more pressure when interest rates rise.