Halftime Report

Monday - Friday, 12:00 - 1:00 PM ET
Halftime Report

S&P Action into Close Should Tell the Story

On Monday investors were searching for clues, trying to figure out the market’s next big move after the prime minister of Greece stunned the Street.

George Papandreou said he will put the nation's bailout deal through a referendum, potentially undoing the agreement struck last week.

Both the Dow and S&P tumbled on the news as investors feared that a resolution to the overseas financial crisis was not at hand, after all.

In morning trade, the S&P 500 traded below its 14-day moving average for the first time since Oct. 7, which some investors interpret as a shift in short-term momentum. However, after the benchmark broke, it then went above strong support at 1,220.

Trader Zach Karabell thinks the market action into Tuesday’s close will be very telling.

“The question becomes will this particular story be the tail that wags the dog or will the earnings and stability in the US dictate the market action going forward. The afternoon will provide important insights into that question.”

What Italy 10Y Bund Spread Reveals

In other words, if the S&P pares losses, Karabell will take the action as a bullish sign – that after the knee jerk reaction to sell first and ask questions later – investors were willing to again focus on the relatively strong fundamentals.

Trader Jon Najarian thinks the pullback presents an opportunity to make a list. He again thinks investors are looking at a situation where it’s savvy to be greedy when others are fearful. Among names on his radar – Johnson Controls.

Trader Steve Cortes thinks the trade is short European banks. “I would use any rally to add to a short position,” he counsels.

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 .

Trader disclosure: On Nov 1, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karabell owns AAPL; Karabell owns MS; Karabell is long IBM; Karabell is long MSFT; Karabell is long GOOG’ Karabell is long FCX; Karabell is long HON; Karabell is long JOYG; Karabell is long CAT; Cortes is long Treasuries; Cortes is short AAPL; Cortes is short DB; Cortes is short BAC; Cortes is short EURO; Cortes is short CAD

For Zach Karabell
Rivertwice owns AAPL calls
Rivertwice owns GS puts
Rivertwice is short XLF
Rivertwice is short SMH
Rivertwice is short IBM
Rivertwice is short puts AMZN
Rivertwice is long HON
Rivertwice is long TGT
Rivertwice is long DE
Rivertwice is long BHI
Rivertwice is long SLB

For Brian Kelly
Shelter Harbor Capital is long FXE
Shelter Harbor Capital is long SPY
Shelter Harbor Capital is long GLD
Shelter Harbor Capital is long VLO
Shelter Harbor Capital is long STD
Shelter Harbor Capital is long SAN.SM

For Rebecca Pattersson
No disclosures

For Jeff Kilburg
No disclosures

For Jacques Cailloux
No disclosures

CNBC.com with wires.