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Can S&P Break Through 1131 Level?

With the markets on their third straight week of gains, the September melt-up continues. But do we have the fuel to continue?

The traders don't think so.

On Friday morning, it looked like the market was breaking out, said Guy Adami of Drakon Capital. Then it was reported that consumer confidence dropped to a one-year low and the market faded into that, he said. In the end, the market remained unchanged, but he thinks that even the bulls have to be leery going into next week.

Gold rallying higher is not good news either, said Tim Seymour of EmergingMoney.com. He thinks we'll get an options hangover next week.

On Tuesday, the Federal Open Market Committee is scheduled to meet. Historically, the market doesn't like holding onto stocks going into the meeting, said Guy Adami of Drakon Capital. Seymour will also be watching how the market reacts to this meeting.

Friday's market was disappointing, said Adami. The overnight market was strong and it looked like we were going to break the 1131 level in the S&P 500 Index, but we couldn't do it. He thinks we're trading in this range, where 1130 is resistance.

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TOPPING THE TAPE: TECH

Oracle continued to push higher Friday and made a new 52-week high.

Terranova is long Oracle and sold half of his position on the pop. He thinks momentum is to the upside, but said other sectors need to join tech in this rally.

Adami was "flabbergasted" by how well this stock is performing. It has every catalyst out there though, so he thinks there will be a pullback. He recommends buying on any pullback, as it should go higher.

Amazon also approached a 52-week high. Adami would take profits on that company.

Elsewhere in the tech space, names like Red Hat and F5 Networks are being mentioned as takeover candidates. As a result, there has been heavy options action, especially in calls. The traders are keeping a close watch on those stocks, as they think the mergers and acquisitions will continue.

Terranova added that he'd watch Qualcomm. Fundamentally, things have changed for the positive and he thinks its stock could climb to $50 a share.

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CORN PRICES RISE

There were big gains in soft commodities Friday, as corn went above $5 a bushel for the first time in two years.

Adami would be long Caterpillar . Using $72.5 as a stop gives you roose on the downside, he said, and a lot of room on the upside.

Seymour noted that John Deere had a great breakout, but recommends going with Potash or Agrium because he thinks POT will go higher.

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Trader disclosures for Friday, Sept. 17, 2010:

TIM SEYMOUR
Seymour owns (AAPL)
Seymour owns (BAC)
Seymour owns (MOS)

GUY ADAMI
Adami owns (AGU)
Adami owns (BTU)
Adami owns (NUE)
Adami owns (C)
Adami owns (GS)
Adami owns (INTC)
Adami owns (MSFT)
Adami’s wife works at Merck

BRIAN KELLY
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (ORI)
Accounts managed by Kanundrum Capital own (RGR)
Accounts managed by Kanundrum Capital own U.S. Dollars
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital own (POT) calls
Accounts managed by Kanundrum Capital own Swiss Francs
Accounts managed by Kanundrum Capital are short Euros
Accounts managed by Kanundrum Capital are short (BCS)
Accounts managed by Kanundrum Capital are short (IAI)
Accounts managed by Kanundrum Capital are short (XLF)
Accounts managed by Kanundrum Capital are short (OIH)
Accounts managed by Kanundrum Capital are short (BA)
Accounts managed by Kanundrum Capital are short Mexican Peso
Accounts managed by Kanundrum Capital are short U.K. Pound

JOE TERRANOVATerranova Owns (APA)
Terranova Owns (AAPL)
Terranova Owns (ARUN)
Terranova Owns (BMO)
Terranova Owns (C)
Terranova Owns (DO)
Terranova Owns (EOG)
Terranova Owns (FCX)
Terranova owns (FTO)
Terranova Owns (XBI)
Terranova Owns (GS)
Terranova Owns (HES)
Terranova Owns (IBM)
Terranova Owns (JOYG)
Terranova Owns (NBR)
Terranova Owns (NOV)
Terranova Owns (OXY)
Terranova Owns (ORCL)
Terranova Owns (PEP)
Terranova Owns (POT)
Terranova Owns (RSH)
Terranova Owns (GLD)
Terranova Owns (SLB)
Terranova Owns (SWN)
Terranova Owns (SU)
Terranova Owns (SPLS)
Terranova Owns (RIG)
Terranova Owns (UPL)
Terranova Owns (MA)
Terranova Owns (VRTS)
Terranova Owns (JOYG)

Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DLUEY)
Virtus Investment Partners own more than 1% of (DRYS)

MICHAEL BLOCK
***No Disclosures***

VICTOR SPERANDEO
***No Disclosures***

CNBC.com with wires.