NEW YORK (TheStreet) -- Stocks were able to put together a meager bounce in the last few hours of Tuesday's trading session but the S&P 500 still dropped 1%. Is this just another buying opportunity or is it the start of something bigger?
It's starting to feel more and more like a correction, Guy Adami, managing director of stockmonster.com, said on CNBC's "Fast Money" TV show. The Russell 2000 is below key support, commodities continue to move lower and bonds have been rallying.
The final piece to the puzzle is the S&P 500, which continues to find support near its 200-day moving average. However, Adami says that a close below 2,050 could be a slippery slope and lead the way to a larger pullback.
While Tim Seymour, managing partner of Triogem Asset Management, isn't ruling out a pullback, he did point out that many of the sectors and individual stocks within the S&P 500 have already had a correction, defined as a pullback of 10% or more.
The market has been completely rangebound on the year, with the S&P 500 up just 1.2% in 2015, said Brian Kelly, founder of Brian Kelly Capital. When the market finally does break out or break down from the current range, a ton of investors will jump on board and ride the momentum. The index is at a "very critical point" of support, he added.
According to Karen Finerman, president of Metropolitan Capital Advisors, it's simply too hard to predict when stocks will correct and by how much. Instead, she's focused on buying quality stocks at good prices. Right now, she's eyeing Macy's (M) and Fossil (FOSL) as possible buys.
Ari Wald, head of technical analysis at Oppenheimer & Company, says the long-term decline in commodities actually bodes well for stocks, and should lead the way to a continuation in the long-term bull market in equities. However, in the short-term, stocks can decline and he's targeting 1,970 as his target in the S&P 500, down 7.5% from the highs.
There's nothing wrong with a stock market correction, it's not like the world is ending, Seymour added. However, he believes commodities are forming a bottom.
Rebecca Patterson, CIO of the Bessemer Trust, said the reaction to China's surprise devaluation of its currency is a complete overreaction. Investors shouldn't be this bearish about a "one-off" event, she said, adding, "I absolutely think this is a buying opportunity."
While she's not a buyer of Chinese equities, she does like Japanese and European stocks with a hedge against their respective currencies, as well as U.S. equities. The country is unlikely to continue devaluing its currency because China wants to be taken more seriously by the global markets and have its currency placed in the IMF global currency fund. She is avoiding emerging markets, which face risk from an interest rate hike in the U.S.
Kelly disagreed, saying this seems like the beginning of a larger devaluation campaign by the Chinese. He added that if the country really wanted to gain entry into the IMF's currency basket, it would have made this move much sooner.
Not benefiting from the devaluation are commodities and European and Korean equities, he added.
Seymour argued that European equities are attractive. They have a lower valuation than U.S. stocks, the European Central Bank is still easing its monetary policy and the companies there have earnings momentum.