On CNBC's "Fast Money" TV show, the trading panel discussed what to do next.
Guy Adami, managing director of stockmonster.com, said the $108 level is "critical support" for the iShares Russell 2000 ETF (IWM), after forming a potential "double top," a bearish technical pattern, near $120.
Brian Kelly, founder of Brian Kelly Capital, said he is a buyer of long-dated Treasury bonds. He added that "sentiment sectors" like biotech and social media have been declining for several consecutive sessions, meaning today's broader selloff wasn't surprising.
Jon Najarian, co-founder of optionmonster.com and trademonster.com, pointed out the Volatility Index is still relatively low by historical standards. He said investors could buy call options and/or bull call spreads in the VIX.X for protection, but he believes it will decline on Friday.
Steve Grasso, director of institutional sales at Stuart Frankel, said the S&P 500 needs to stay above 1,952, which is last week's low. For now, he is a buyer of utility stocks such as Southern Company (SO) and gold via the Market Vectors Gold Miners ETF (GDX).
Tim Seymour, managing partner of Triogem Asset Management, said geopolitical issues haven't mattered much to U.S. equities until now. He added that the S&P 500 fell 1% for the first time in nearly 60 sessions, while the Market Vectors Russia ETF (RSX) fell 7%.
Thomas Pickering, former U.S. Ambassador to Russia, said the shooting down of the Malaysian airliner above Ukraine is "terribly tragic." Russian President Vladimir Putin seems rather "defensive" and perhaps the incident is "bad enough that it will bring some sanity" to the situation, Pickering said. Israel also invaded the Gaza Strip Thursday, hoping to destroy underground tunnels that lead into Israel. The attack isn't surprising and the region needs political change, Pickering concluded.
Robert Peck, Internet analyst at SunTrust Robinson Humphrey, has a buy rating on shares of Google (GOOGL) with a $680 price target. He said business in the U.K. is reaccelerating, which is very positive for Google. He said there are four big takeaways for the earnings report: Google is growing revenue "north of 20%" year over year, has stable margins, is reinvesting excess profits for long-term growth and has a low valuation.