On Wednesday the bulls were eager to find a catalyst that could contain the selling and prevent the S&P from closing with 5 consecutive days of declines.
But they may be looking at a case of ‘be careful what you wish for’ because what they got may be something of a double edged sword.
Largely, it was the energy sector that helped buoy the S&P 500.
Buyers gobbled up Exxon and other integrated names after oil prices shot higher on news OPEC talks in Vienna broke down without an agreement among the nations to increase production, as had been expected.
"We were unable to reach an agreement -- this is one of the worst meetings we have ever had," Saudi oil minister Ali al-Naimi said after failing to convince other members to lift production.
Although energy helped drive the S&P for most of 2011, strength in this sector could do more harm than good as oil again enters the danger zone – above $100 a barrel.
Did OPEC just telegraph that $100 oil is here to stay? What should you expect?
Instant Insights with the Fast Money traders
Largely, the Fast Money traders are all expecting higher crude prices.
Pete Najarian calls the OPEC developments “concerning and a problem.” And not so good for the present recovery.
Energy trader Joe Terranova thinks it shines spotlight on the current deficit of oil in the broad market. Although Terranova anticipates higher crude he doesn’t suggest playing the spot price. Instead he’s bullish Occidental , Exxon , as well as Hornbeck Offshore because he thinks developments will re-ignite interest in off-shore drilling.
Trader Brian Kelly is also positioning for higher oil. But not because of OPEC – because of China. “BP came out with their oil statistics for the year and China has become the largest consumer of oil in the world. That’s the first time ever. Remember their GDP is half the US and they’re consuming more oil than us.”
Trader Zach Karabell also expects demand from China and other energy nations to drive oil.
Only trader Steve Cortes is looking for lower oil. "Unless it breaks out I see lower energy prices ahead.” Cortes thinks the stronger dollar combined with economic weakness around the globe will pull down prices.
UNUSUAL ACTIVITY: GM
Pete Najarian has spotted unusual activity in GM – specifically higher than usual volumes in the GM Jun 29 weekly calls as well the GM Jun 29 monthly calls.
It seems that some investors are expecting a little more upside, says Najarian.
ABSURDITY OF THE EURO
Greece is in financial distress. Ireland stands on the brink of a financial disaster and Spain might likely need a bail out to avoid default. Yet the euro hit a one-month high against the dollar earlier in the week.
What should you make of it?
Strategic investor Dennis Gartman finds gains in the euro bizarre, absurd and patently illogical. "I think one can be a seller of the euro and know that the risk is relatively minimal."
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Trader disclosure: On June 8, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns (F) bonds; Pete Najarian owns (F); Pete Najarian owns (CLF); Pete Najarian owns (MOS); Pete Najarian owns (ACI); Pete Najarian owns (C); Pete Najarian owns (MS); Pete Najarian owns (MSFT); Karabell owns (AAPL); Karabell owns (GS); Karabell owns (GOOG); Karabell owns (RIMM); Cortes owns (GOOG); Cortes is short Nikkei; Cortes is short EUR; Cortes is short AUD; Cortes is short Silver; Cortes is short (BIDU);
For Brian Kelly
Accounts Managed by Brian Kelly Capital own (TLT)
Accounts Managed by Brian Kelly Capital own (GLD)
Accounts Managed by Brian Kelly Capital own (SLV)
Accounts Managed by Brian Kelly Capital own (IWM) puts
Accounts Managed by Brian Kelly Capital own (USO) puts
Accounts Managed by Brian Kelly Capital own New zealand dollar
Accounts Managed by Brian Kelly Capital are short Euro
For Zachary Karabell
River Twice Capital is short (CAT)
River Twice Capital is short (SPY)
CNBC.com with wires.