NEW YORK (TheStreet) -- While the S&P 500 closed lower by 0.63% on Monday, the volatility index did not close higher on the day. Pete Najarian, co-founder of optionmonster.com and trademonster.com, pointed out that the CBOE Volatility Index (VIX.X) , which usually trades with an inverse relationship to the stock market, closed lower by 3.3% on the day but still over the $20 level. It's likely to stay near this level for a few more trading sessions as volatility remains elevated, he said.
Oil prices have not been good, according to Karen Finerman, president of Metropolitan Capital Advisors. Instead of opening higher and selling off violently into the close, it would be better to see the commodity open lower and rally throughout the session. If and when that happens, it could be the mark of a short-term bottom.
Must Read: 12 Stocks Warren Buffett Loves in 2014
The S&P 500 seems likely to decline to 1,950, where its 200-day moving average is. It would also mark a 50% pullback of the rally from the October low and the most recent high, said Guy Adami, managing director of stockmonster.com. The iShares Russell 2000 ETF (IWM) looks like it's headed to $108. Adami expects both of these levels to act as support.
The market selloff likely has further to go, according to Brian Kelly, founder of Brian Kelly Capital. Although the fall in oil prices may continue -- which would hurt high-debt energy companies -- he covered his short iShares High Yield Corporate Bond ETF (HYG) position. However, it's "way too early" to enter the exchange-traded fund on the long side.
Finerman recently bought debt notes from North Atlantic Drilling (NADL) saying that while the stock has traded terribly, the company will more than likely "make good on the bonds," she explained.
It's too early to buy the HYG ETF as a trade, but not as an investment, according to Greg Peters, senior investment officer at Prudential. Other sectors, including utilities, health care, U.S. consumer and technology high-yield bonds are all buys at this level, he said.