'Fast Money' Recap: Halloween Arrives Early

NEW YORK (TheStreet) -- Halloween came early as fears of a stronger dollar and weak consumer spending sent the markets crashing.

The Dow Jones Industrial Average sank 249.85, or 2.51%, to 9,712.73, while the S&P 500 lost 29.93, or 2.81%, to 1036.18. The Nasdaq dropped 52.44, or 2.5%, to 2,045.11.

Melissa Lee said on CNBC's "Fast Money" TV show that stocks suffered their biggest one-day drop since July.

Guy Adami said he found Thursday's big rally "unbelievable" and said today's dropoff is the "beginning" of a drop in the market.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Tim Seymour said the market is clearly telling investors there is a rotation going on out of risk to high-quality big-cap stocks. "The small caps were getting crushed," he said. "Every technical has broken down."

Joe Terranova said the market couldn't recover from losses all during the during the week, setting up for what he thinks now will be a larger market decline.

With a 50% jump in volatility, Karen Finerman said investors should be selling some of the protection they own.

Lee said the financials took a drubbing after Calyon Securities analyst Mike Mayo said in a report that he expects Citigroup(C Quote) to make $10 billion in writedowns in deferred tax assets in the fourth quarter.

Christopher Whalen, managing director of Institutional Risk Analytics, said the information wasn't new but it served as a wakeup call for those who were optimistic about the sector. "There's been enormous denial of offbalance exposures and tax intangibles."