Technical Signals Every Trader Should Heed

Friday, 1 Jun 2012 | 5:17 PM ET

With the Dow trading negative on the year and the S&P slipping below it’s 200-day, is the market doomed to the malaise of last summer?

Now, more than ever, the Fast Money traders suggest watching a few key technical levels as you attempt to answer that question.

S&P Technicals

Steve Grasso says in the near-term how the market behaves between 1285 and 1275 will be telling.

1285 was a level of strong resistance last October – 1284 is the 200-day moving average and 1275 was the Egypt bottom. The range should generate strong support.

However, if it doesn’t – Grasso thinks it’s likely the market trades down to flat on year which is 1257.

CBOE Volatility Index

Both Pete and Jon Najarian suggest keeping a close eye on the Vix. “Ever since the Vix broke above the 50-day on May 3rd, Pete Najarian has been concerned.

“Then on May 4th it broke above the 100-day at 19. Now it’s above the 200-day above 25,” he says. That’s a negative trend and a cause for concern.

“Not until the Vix trades back down to about 19 would I start to feel bullish again,” he tells us.

Posted by CNBC's Lee Brodie

Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On June 1, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jon Najarian is long FB CALL SPREADS; Jon Najarian is long DAL CALL SPREADS; Jon Najarian is long JPM CALL SPREADS; Jon Najarian is long GS CALL SPREADS; Jon Najarian is long VIX CALL SPREADS; Jon Najarian is long CIGX; Jon Najarian is long DDMG; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long GLD; Pete Najarian is long AAPL; Pete Najarian is long AAPL CALLS; Pete Najarian is long C; Pete Najarian is long GDX CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long PEP; Pete Najarian is long FB; Pete Najarian is long JOY; Josh Brown is long COP; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA

For William Irving
William Irving is long FGOVX

For Paul Sankey
Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within the past year: OXY
This company has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services: OXY
Does Deutsche Bank (and/or affiliates) own 1% or more of any class of common equity securities of this company: OXY
company an Investment Banking client of DBSI: OXY
Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within the past year: OXY

For Whitney Tilson
Whitney Tilson is long NFLX
Whitney Tilson is long JCP
Whitney Tilson is long AIG
Whitney Tilson is long JPM
Whitney Tilson is long C
Whitney Tilson is long GS
Whitney Tilson is long WFC

CNBC.com with wires.

  Price   Change %Change
S&P 500

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.