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Morning Market Worries Turn to Afternoon Delight

In the last week a distinct pattern has developed in the U.S. stock market. Four out of the last five days, the S&P 500 Index closed higher than where it was at noon. These afternoon rallies followed mornings dominated by worries overseas about a Greek bailout or concerns about China tightening rates.

“Investors appear to be considering the consequences of far-reaching global events, but ultimately investing based on immediate and near-term trends in the domestic economy,” wrote analysts at Argus Research, in a note to clients this week.

As soon as the London and Paris markets close at 12:30 ET, a relief rally in the U.S. apparently has already set in. The S&P 500 headed for its highest close in 18 months today in a slow creep that continues to suck more and more investors in.

“The closet indexers that are trying to be careful with their entry price are forced to raise their limit orders and keep buying at higher levels in order not to miss out on the melt up,” said Gary Kaminsky, who used to manage $13 billion for Neuberger Berman and is a regular contributor to ‘Fast Money’.

While the concerns overseas are ultimately dismissed before trading ends here, it is significant at how long the news out of Europe seems to hover over our markets, analysts and investors said. It speaks to the role of the U.S. as a more interconnected player in the global economy. Trends set at the NYSE and NASDAQ used to be the dominating forces that reverberated from Australia through to Germany overnight.

“When the U.S. was by far the biggest force in the global economy, such news was digested with breakfast and mainly ignored during the U.S. trading day,” according to Argus.

For the best market insight, catch 'Fast Money' each night at 5pm ET on CNBC. To play Fast Money’s bracket challenge, go to fastmadness.cnbc.com.

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Trader disclosure: On March 23, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (AA) Call Spread; Najarian Owns (AKS) Call Spread; Najarian Owns (CLF) Call Spread; Najarian Owns (TCK); Najarian Owns (TEVA); Najarian Owns (MYL); Najarian Owns (F) Call Spread; Najarian Owns (INTC) Calls; Najarian Owns (TIE) Call Spread; Najarian Owns (YHOO) Call Spread; Najarian Owns (BAC) Call Spread; Najarian Owns (C) Calls; Najarian Owns (F) Calls; Najarian Owns (RHT) Calls; Najarian Owns (TIE) Calls; Najarian Owns (YHOO) Call Spread; Terranova Is Short (CAL), (UAUA), (GOOG), (GS); Terranova Owns (QCOM), (APA), (TER), (BEAV), (AMSC); Terranova Owns (GS) Puts; Terranova Is Long Crude Oil May Futures; Cortes Is Short Euro; Grasso Owns (AAPL), (ABK), (ASTM), (BA), (BAC), (BGP), (C), (COST), (CSCO), (PFE), (PRST), (WMT), (JPM), (NEM); Edwards Owns (TM); Edwards Owns (AAPL) For Clients; Edwards Owns (F) For Clients; Edwards Owns (CSCO) For Clients; Edwards Owns (GOOG) For Clients; Edwards Owns (JCG) For Clients; Edwards Owns (INTC) For Clients; Edwards Owns (MSFT) For Clients; Edwards Owns (QQQQ) For Clients; Edwards Owns (RIMM) For Clients; Edwards Owns (SPY) For Clients

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