The markets sank again Tuesday on deepening worries about the economy. The Dow Jones Industrial Average lost 161.27, or 1.94%, to 8,163.60, while the S&P 500 lost 17.69, or 1.97%, to 881.07. The Nasdaq dropped 41.23, or 2.31%, to 1,746.17.
Tim Seymour said on CNBC's "Fast Money" TV show that the S&P broke through its 200-moving day average. As a result, he sees the index heading down to 830. Guy Adami had a different take on the drop in the index. He said the index is moving down to 870 as he predicted, but he said it's not a "bad sign." He said the drop is actually giving a lot of people an opportunity to get back in. Karen Finerman agreed with Adami about the need for the selloff. However, she said investors should look closely at the fundamentals in the upcoming earnings before deciding whether to jump in. Joe Terranova said it's all about earnings now with the end of the reflation trade. Melissa Lee, the moderator of the show, shifted the discussion to the commodities, which were hit hard today. She noted one principal reason for the decline was the move by the Commodity Futures Trading Commission to consider placing curbs on speculative commodity trading. Terranova said the commission is not opposed so much to speculation as it is to "zombie buyers," or index funds that gather up the paper assets as oil prices march higher. Adami, though, said the commission should just leave the free markets alone to deal with the zombie buyers.