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Pullback ‘Is What You Want to See’: Brown

'This Is What You Want to See' in Market: Brown
VIDEO2:1302:13
'This Is What You Want to See' in Market: Brown

The decline underway in stocks is positive for investors, Josh Brown of Fusion Analytics said Tuesday on CNBC.

"I actually think this is the absolutely, most constructive thing that could be happening," he said. "This is what you want to see if you're bullish. We're very close to new highs, and, quite frankly, you've got consolidation on very low volume."

Midday, the S&P 500 was down 7 points. The traded 66 points lower, and the was down 15.

On "Fast Money," Brown pinpointed one characteristic that he said would bode well for the market.

"My favorite feature of the action this week is the fact that correlations continue to stay almost nonexistent," he said. "In other words, even when you have down days, you have some groups that continue to work, and I like to see the money rotate from sector to sector in an orderly fashion, without a lot of panic, even though we're opening down and staying down."

OptionMonster's Pete Najarian said that after stocks approached five-year highs, two sectors would go higher: Financials and industrials.

Growth in China would push industrials higher, he said, adding, "I don't necessarily that it'll be this quarter."

Mike Murphy of Rosecliff Capital also wasn't concerned about the market's recent decline.

"The market needed to settle in a little bit," he said. "That's what it's doing."

In the bigger picture, it was important to add protection, Murphy added.

"Get long your core names," he said. "Get long your Apples if you want to because you can go out, you can buy puts at a very reasonable price to protect your downside."

Trader disclosure: On Jan. 8, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Mike Murphy is long AAPL; Mike Murphy is long C; Mike Murphy is long TGT; Mike Murphy is long FB; Mike Murphy is short AMZN; Joe Terranova is long VRTS; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long VZ; Joe Terranova is long XOM; Josh Brown is long AAPL; Josh Brown is long XBI.