On Wednesday, the Fast traders were taking a long hard look at the rally after stocks bounced of a key level of support and charged higher.
The advance was quite remarkable with all ten sectors of the S&P gaining and the Dow surging by triple digits.
Largely the optimism was triggered by a decision from Germany’s top court, which rejected lawsuits aimed at blocking the country from providing aid to Greece and other EU nations.
"While a resolution to the issues in Europe is not immediate, this shows that they seem to be on the path of making some progress," says Howard Ward, chief investment officer at GAMCO Growth in a Reuters interview. "That's a huge positive."
On the news the Vix receded sharply - the index usually moves inversely to the S&P 500. Although most traders don’t think the market gyrations are over by any stretch – the question becomes – is the worst finally behind us?
Instant Insights with the Fast Money traders
OptionsMonster Jon Najarian does in fact think the worst is over. “We’ve seen the lows for the year,” he says. “I think we saw the bottom around 1136 in the pre-market.” Looking at the chart patterns Najarian suggests the bounce makes a bullish double bottom pattern.
”That’s not to say we’re off to the races but I do expect that we go higher – as much as another 100 Dow points by Wednesday’s close,” he says.
Trader Zach Karabell agrees with DocJ that Tuesday’s bounce may be a ‘tell.’ “The S&P bounced off the lows on Tuesday after a terrible day in Europe on Monday. We could have had a 500 point down day but we didn't."
