After a market pullback that saw the S&P 500 post the worst day in 2013 so far, a few sectors still have upside potential, Alec Young of S&P Capital IQ said Wednesday on CNBC.
The catalyst was release of the FOMC meeting minutes, which hinted at a shift in its quantitative easing with the words, "several on FOMC said Fed should be prepared to vary pace of QE."
The Dow Jones Industrial Average also dropped below 14,000.
(Read More: Fed Talk on Slowing QE Hits Stocks)
"I think you live by the Fed, you die by the Fed," he said. "This record global liquidity has definitely been pushing investors into riskier assets than they otherwise would've been looking at. And even though today is not a death knell for QE, it certainly gives people the sense that there's a little more disagreement on the committee than maybe people realized."
"We're starting to see more vocal concerns about the QE that's going on and the conditions around unwinding it. I think that, coupled with the fact that we had one of the most overbought markets in recent memory, I don't think you can be surprised by the big pullback here."
But three sectors were still in Young's good graces: Discretionary, industrials and health care.
"We'd continue to stay with that mostly cyclical cocktail into any weakness here," he said.
Young said that he had expected the S&P 500 to reach 1,550 to 1,575 before pulling back, acknowledging that the levels might have been overly aggressive.
In the long-term, however, Young's outlook appeared to remain positive.
"I don't think the QE party is over," he said.
Trader disclosure: On Feb. 20, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Dan Nathan is long BBRY FEB/APRIL 14 PUT SPREAD; Dan Nathan is long FB APRIL 34 CALLS; Dan Nathan is long AMZN APRIL 240/200/160 PUT FLY; Dan Nathan is long QID / SHORT QQQ; Dan Nathan is long SDS / SHORT SPY; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is short PAY; Karen Finerman is short IWM; Karen Finerman is short SPY; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long SBUX.
