On Wednesday investors were scrambling to place their bets as bulls started floating the idea that the stock market might have bottomed.
The market’s advance was certainly impressive - both the S&P and Dow posted their best days of 2012.
All 10 S&P 500 sectors traded higher, led by the energy, financials and technology , all of which are tied to global growth.
Technicals also looked promising. Bulls were able to push the broad S&P 500 above 1284 - the 200-day moving average, a closely watched level.
Are these early signs of a big stock market rally?
Largely the Fast Money desk does not think so.
“I’m not a believer,” says trader Guy Adami. My instinct is that this is a bounce and that the S&P only has another few handles of upside. I think 1322, a level of past support will generate resistance.”
“I’m not a believer either,” adds trader Brian Kelly. “With the market selling off so much, I think gains were a short covering rally with investors worried about being short ahead of Bernanke’s comments before Congress on Thursday.”
“All-clear, no way!” adds Karen Finerman. “Absolutely nothing has been addressed let alone fixed.”
Trader Mike Murphy thinks the market is somewhat range bound. He says, “sell the rips and buy the dips” until the market tells you otherwise.