Stock Market Marching Up to 1409: Pros

“I think the rally is sustainable,” says trader Brian Kelly, founder of Shelter Harbor Capital. He and many of the other Fast Money traders expect current levels to hold.

“Technicals suggest 1409 is the next key level on the S&P,” says trader Tim Seymour, founder of EmergingMoney.com.

Of course Kelly, Seymour and all the traders are keenly aware that the statement coming at the end of the FOMC meeting on Wednesday is bound to have the market on edge.

“Even if Bernanke doesn’t say anything outright, I think he hints that we get some kind of QE and the process starts all over again,” Kelly adds in defense of his bullish outlook.

If the rally does endure, it will be some rally.

The S&P 500 has gained 7.2 percent from a five-month intraday low reached on June 4. And on Tuesday, the technical took a very bullish turn – the benchmark index closed above its 50-day moving average of 1,346.90 for the first time in seven weeks.

But the sharp gains leave the market vulnerable if the outcome of Wednesday's Fed meeting doesn't meet market expectations.

"People are anticipating some type of response from the Fed, and are buying or covering shorts in anticipation of that," explains Paul Zemsky, head of asset allocation at ING Investment Management in a Reuters interview. "There's a risk the market gets disappointed."

Trader Karen Finerman agrees. “I don’t have a lot of confidence in the market – I would not be fully invested anticipating a rally," says the president of Metropolitan Capital.

Trader Jim Iurio, Managing Director of TJM Institutional Services, sides with Kelly and Seymour. He feels that the Fed might not even matter that much.

He thinks if there’s any good news in the market – not matter where it comes from – it will send the S&P higher, simply because there are so few places for money to go.

And Brian Kelly says the market is starting to get good news from overseas. “There’s also chatter that Europe is a step closer to resolution. We’re hearing that Germany is softening their stance and the Greek election took some tail risk off the table. Quite a few things are snowballing.”

“But you don't want to buy Euirope. So, at the end of the day what’s left to buy besides US stocks?!” Iuro likes putting money to work in big cap tech with strong balance sheets such as- Microsoft , Cisco, and Oracle .

Posted by CNBC's Lee Brodie

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Trader disclosure: On June 19, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long WMB; Joe Terranova is long SJM; Joe Terranova is long UPC; Joe Terranova is long WFM; Joe Terranova is long LPX; Joe Terranova is long SNDK; Joe Terranova is long IBM; Joe Terranova is long HYG; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long CNX; Karen Finerman is long AAPL; Karen Finerman is long BAC ; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long M; Karen Finerman is long CVS; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long MSFT; Brian Kelly is long AAPL; Brian Kelly is long BAC; Brian Kelly is long PNC; Brian Kelly is long JPM; Brian Kelly is long WFC; Brian Kelly is long MSFT; Brian Kelly is long AMAT

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