Watch Euro for Market Sign: Terranova

The euro is heading in a direction that could be bearish for stocks and commodities, Joe Terranova of Virtus Investment Partners said Wednesday.

On CNBC's "Fast Money," he noted that the euro looked like it was going to break below its 50-day moving average.

"That is going to be very bearish for commodities and materials going forward, so it's a place you don't want to be right now," he added. "It's something you have to watch right now."

Terranova attributed stock market declines midday to investors who have missed the rally and are waiting for a spot to jump back in.

That, he added, provided "a little bit of a put underneath the marketplace itself."

Meanwhile, OptionMonster's Pete Najarian remained positive on stocks.

"I think we're going to get a breakout from one of these sectors," he said. "And I think also once they start to flush out all the folks that were on that gold wagon, the silver wagon, all the rest of it. When you look at it, all across the commodities space, that's what's getting hit right now.

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"I look at the major indices right now, all of them holding very well right now, and I think that can propel us to the next level."

Rosecliff Capital's Mike Murphy still liked the financial sector ETF, XLF, which he noted was "a couple of ticks off its all-time high."

With the VIX still relatively low, he said things looked good for bulls.

"You can be long this market, have your protection in place, but we go higher," he said.

Trader disclosure: On Feb. 20, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Mike Murphy is long FB; Mike Murphy is long TOL; Enis Taner is long GS; Enis Taner is long TSLA CALL CALENDAR; Enis Taner is long QCOM PUT SPREAD; Enis Taner is long C PUT SPREAD; Enis Taner is long SPY PUTS; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long MS CALLS; Pete Najarian is long YHOO; Pete Najarian is long BBRY; Pete Najarian is long SBUX; Pete Najarian is long FB; ;Pete Najarian is long MSFT; Pete Najarian is long PFE; Pete Najarian is long MRK; Pete Najarian is long MRK CALLS; Pete Najarian is long GSK CALLS; Pete Najarian is long JOY CALLS; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long MJN; Joe Terranova is long AXP; Joe Terranova is long JPM; Joe Terranova is long DIS; Joe Terranova is long FB; Joe Terranova is long BRKb; Joe Terranova is long GS; Joe Terranova is long SWN; Joe Terranova is long XOM; Joe Terranova is short EMINI S&P Futures March.