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Chartology: Is the S&P Breaking Down?

Market technicians are keeping a close eye on a handful of S&P key levels. And how the market behaves at these key junctions could signal whether a serious correction is in the cards.

Here’s what chart watchers have on their radars

S&P 1344 - The Feb. 18th high

S&P 1331 – Minor trend line since March 16th Tsunami-Gaddafi low.

S&P 1315 – Major trend line in effect since lows of late August 2010

S&P 1312.70 – April 19, 20 gap

We’ve broken most of these key levels but according to Oppenheimers Carter Worth don’t sweat it.

He says despite what may look and feel horrible “These are normal reference points and are healthy.” In fact, Worth thinks the market is “set up for nice strength.”

Instead of those levels listed above, Worth says the key level to watch is about 1280 on the S&P, the 150-day moving average. “That’s a major line in the sand,” he says.

But even if we test it, Worth thinks it holds. "More than likely we'd bounce," he says.





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Trader disclosure: On May 23, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns (XOM); Terranova owns (KSS); Terranova owns (CVI); Terranova owns (OXY); Terranova owns (TM); Terranova owns (BJ); Terranova owns (DIS); Terranova owns (PFE); Terranova owns (V); Terranova owns (HPQ); Terranova owns (FLX); Terranova owns (JPM); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (VRTS); Terranova is short (DELL); Weiss owns (DRR); Weiss owns (UUP); Weiss owns (MRK); Weiss owns (DE); Weiss owns (BRCM); Weiss owns (AKAM); Weiss owns (KO); Weiss owns (ETP); Weiss owns (NS); Weiss owns (COP); Weiss owns DVN); Weiss owns (HK); Weiss owns (NAV); Weiss owns (TEVA); Weiss owns (TWM); Weiss owns (QCOM); Weiss owns (MDRX); Weiss owns (VZ); Weiss owns (HAIN); Weiss owns (MSFT); Weiss is short (X); Weiss is short ( AKS); Weiss is short (SHAW); Finerman and Finerman's firm own (AAPL); Finerman and Finerman's firm own (BP); Finerman and Finerman's Firm own (CMI); Finerman's Firm owns (IBM); Finerman owns (C); FInerman owns (JPM); Finerman's Firm owns (JPM) leaps and (JPM); Finerman's Firm owns (TGT); Finerman owns (UNG); Finerman's Firm is short (IWM), (MDY), (SPY); FInermans firm is long S&P Puts, Russell 2000 Puts; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU)

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