NEW YORK (TheStreet) -- Stocks fell Thursday with the S&P 500 off 1.04%. Worse, the iShares Russell 2000 ETF (IWM) declined by 2.1% and stopped near critical support, Guy Adami, managing director of stockmonster.com, pointed out during CNBC's "Fast Money."
If investors are bullish on small-caps, the pullback is a "screaming buy," Adami said. He also pointed out the "substantial" reversal in Apple (AAPL) stock, over 5% since reporting earnings. The current price action has been relatively bearish but the stock could find support near $125.
Meanwhile, quality biotech stocks are being weighed by selling pressure in exchange-traded funds such as the Nasdaq Biotechnology ETF (IBB). Adami said a company like Amgen (AMGN) looks like a buy after the recent selloff and "fantastic" earnings results, he said.
The selling pressure could continue, especially with levered ETFs driving biotech stocks lower, said Jon Najarian, co-founder of optionmonster.com and trademonster.com. However, once the selling become overdone a sharp rally wouldn't be surprising.
The selling pressure in biotech could have more to do with investors looking to reduce risk and diversify away from what's perceived as risky equities, added Tim Seymour, managing partner of Triogem Asset Management.