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.
Brian Kelly, founder of Brian Kelly Capital, took profits in a number of stocks, including Microsoft (MSFT) - Get Report, Advanced Micro Devices (AMD) - Get Report, Cisco Systems (CSCO) - Get Report, and Consol Energy (CNX) - Get Report while booking a loss in Facebook (FB) - Get Report.
Grasso said value technology stocks are acting as a "shelter" for investors. He added that people are also buying energy stocks.
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.
She added that Facebook is likely to get involved, but not through an acquisition. Regarding the company specifically, she said CEO Mark Zuckerberg seems worried about "staying current" and is emulating Google (GOOG) - Get Report by adopting many different business strategies.
Grasso was also long Twitter and said the stock could sell off ahead of its earnings report in May.
Kelly said investors could buy Autodesk (ADSK) - Get Report as a safer play on 3-D printing. Grasso said his own safer 3-D printing play was Hewlett-Packard (HPQ) - Get Report. He added that Stratasys (SSYS) - Get Report has a better looking chart than 3D Systems (DDD) - Get Report.
For their final trades, Kelly was a buyer the iPath Dow Jones-UBS Sugar Total Return Sub-Index ETN (SGG) - Get Report and Grasso was a buyer of Pioneer Natural Resources (PXD) - Get Report. Adami was buying Symantec (SYMC) - Get Report, while Seymour was selling the iShares MSCI Brazil Capped ETF (EWZ) - Get Report and buying the iShares MSCI South Korea Capped ETF (EWY) - Get Report.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.