Halftime: Telling that S&P Held 1,131 Monday?

The traders are keeping a close eye on stocks Monday, after President Obama spoke on CNBC and the S&P held its ground.

Although commentary from this President can drag down market sentiment - that didn't happen on Monday and Fast Money trader Joe Terranova finds the reaction, bullish.

Technically, the market is breaking out, said Terranova, chief market strategist of Virtus Investment Partners. Money managers are coming back from vacation and putting money back into the markets, Terranova said.

"Nothing that (Obama said) should make money managers step back from risk-on trades," he said. "I would not make any changes to my portfolio after hearing Obama speak."

In fact, stocks extended their September rally into a fourth week Monday as President Obama spoke at a CNBC-sponsored town hall in Washington.

While the President did not further clarify his stance on taxes or extending the Bush tax cuts, the S&P 500 Index was still able to hold above the key technical level of 1,131, noted trader Steve Grasso from the floor of the New York Stock Exchange following "Investing In America."

Grasso agrees that's a bullish sign. (During past conversations Grasso has said he thinks the S&P is trying to make it's way to 1200.)

Because Obama did not provide additional clarity on taxes, investors should look closely at the November elections, said Patty Edwards, chief investment officer at Trutina Financial. She noted that Obama suggested that there will be turnover in the US House and Senate, so it will be important for investors to monitor these races.

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Trader disclosure: On Sept. 20th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (AAPL), (FCX), (IBM); Terranova is chief market strategist of Virtus Investment Partners, LTD.; Edwards own (AAPL) for clients; Edwards own (AMZN) for clients; Edwards own (GOOG) for clients; Edwards own (IBM) for clients

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