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Fast Money

Is the Market Stuck in a New Trading Range?

On Monday, chatter on the Street had everything to do with the decline in the market and how the S&P closed.

Selling accelerated as the session drew to and end with the S&P slipping below 1257 - which is flat on year.

However, the S&P closed only slightly below flat on year. And considering October was the best month for stocks since 1991, the declines may only be prudent profit taking.

What should you make of the market action?

Instant Insights with the Fast Money traders

The usually bullish Joe Terranova concedes that he’s less long than he was Friday. “The question is – can the S&P can hold 1229?” he says.

However, Terranova’s outlook is not bearish.

Rather he thinks the market is moving into a new and higher trading range. “I think the floor has been raised and now the question become has the ceiling also been raised – I’d play the market long on pullbacks.”

Trader Dan Nathan is also bullish – at least relatively. He points to the decline in the Vix below 30 and also a seasonal trend. “We’re moving into the holidays which is historically a strong period,” he says.

Market Volatility: New Trading Range?

He too is looking for gains - but not right away. “If the market pulls back 3-5% I’m a buyer,” says Nathan.

Chris Verrone of Strategas Research Partners tells us the technicals suggest to him that the market is range bound.

In other words, don’t get to bulled up but don’t get to beared up either.

“The floor is probably around 1200 – if we pull back to that level, I think that’s attractive,” he says.

In addition to the charts, Verrone agrees with Nathan that the calendar favors bulls. "The 3rd week of October to the fourth week of December is seasonally a very good time for stocks," he says.

Trader Karen Finerman sees the market a little differently. She thinks the market continues to be all about Europe. "I don't think the pain is over," she says. The headlines will continue to dictate the market’s direction.

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Trader disclosure: On Oct 31, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Nathan is long Jan puts BAC; Nathan is long Nov & Jan puts MS; Nathan is long Jan calls NFLX; Nathan is long Jan puts INTC; Nathan has long Nov puts CSCO; Kelly is long GLD; Terranova is long APC; Terranova is long F; Terranova is long AAPL; Terranova is long FCX; Terranova is long CAT; Terranova is long AXP; Terranova is long EMC; Terranova is long IBM; Finerman owns BAC; Finerman owns GOOG; Finerman owns JPM; Finerman’s firm owns AAPL; Finerman’s firm owns YHOO and short calls; Finerman’s firm owns IBM and short calls

For Brian Kelly
Shelter Harbor Capital is long VLO
Shelter Harbor Capital is long SPY
Shelter Harbor Capital is long COL

For Todd Gordon
No disclosures

For Dennis Gartman
Gartman is long gold
Gartman is short Euro

For Chris Verrone
No disclosures

For Evan Gold
No disclosures

For Jim Iuorio
Iurorio is long JNJ short calls

For David Greenberg
Greenberg is long CME and wires