On Thursday investors were wondering if stocks had put in a floor after the S&P 500 held an important technical level despite heaving selling at the open, which pushed the broad-based index down almost 1 percent.
Specifically, stocks bounced back above the 1,130 mark - a level of resistance in June and August. Now investors are wondering if that level -- once resistance -- has now become support. In other words has the market found its bottom?
What should you make of it?
Instant Insights with the Fast Money traders
I don’t think investors realize what critical levels we’re at on the S&P, says Guy Adami. Personally, I was surprised by the bounce. We’re at a crossroads. We’re either going to explode higher or trade a lot lower. I’m bias to the downside.
We’re range bound right now; we’re stuck between 1110 and 1150, adds Steve Grasso. We kissed 1150 a few days back and then we started to retrace the move. It’s bullish that the S&P held at 1130. However, if we retrace the whole move it’s very negative. And if the S&P crosses below 1116, the 200-day, bail out, he says.
For what my opinion is worth, my bias is higher, Grasso adds. Looking at fundamentals, the potential for a GOP win in the House should be good for stocks.
TOPPING THE TAPE: TECH
As investors grapple with the future of this rally, there’s no denying that tech has been performing remarkably well, lately.