Both the Dow and S&P 500 finished in negative territory on Tuesday for the 4th time in as many days.
The S&P is now trading at its lowest level in seven weeks and the Dow slipped below the psychologically important 10,000 level before paring some of those losses.
When will the selling stop?
How should you position now?
Instant Insights with the Fast Money traders
Looking at the broad market, there's a tremendous amount of economic data coming over the next two weeks including durable goods orders, GDP, China PMI, ISM and more, explains Joe Terranova. If it disappoints the market it could be looking at strong headwinds.
I'm concerned about volume, says top ranked analyst Jeff DeGraaf of ISI Group. It's not unusual in a secular bear market to have volumes contract. It's par for the course. My concern is that we're seeing strong volumes on weakness and light volume on strength. That's a bearish sign.
We're in a negative trend and oversold conditions need to be much deeper before they hold. We're not anywhere close to having a modest oversold condition. I expect the S&P to break 1010. We probably trade down to 960, DeGraaf says.
It seems to me that more investors are turning bearish here in the US, muses Tim Seymour. And the economic data is telling a terrible tale domestically. But globally business is not falling apart. I think the play is long global multi-nationals such as McDonald’s , Coke and Unilver .
I’m a contrarian and all the bearishiness in the market makes me bullish, says Steve Cortes. I think this is a buying opportunity. We’re nowhere near the July lows of 1010 – in fact we're still 40 S&P points away.
We’ve been range bound for weeks and weeks and at some point valuations will matter, adds Karen Finerman. I took some of my hedges off on Tuesday. And if you’re looking for a trade I established a long position in BP on Tuesday. The stock is down $6 from where they plugged the well. I recognize the company is facing troubles but I like the valuations.