Stocks slid and the S&P 500 fell through a key technical level on Thursday amid global economic worries, suggesting more losses may be on the way.
Nearly seven stocks fell for every one that rose on both the New York Stock Exchange and the Nasdaq, in an indicator of the depth of the negative sentiment driving the sell-off.
What must you know? How should you position now?
Instant Insights with the "Fast Money" Traders
The S&P 500 on Thursday breached its 50-day moving average of 1,300, reports CNBC's Melissa Lee, leading "Fast Money" trader Guy Adami to take a risk-off approach.
The market is stuck in a trading range of 1,300 to 1,325, said Adami, managing partner at Drakon Capital. He thinks it's "somewhat encouraging" that the S&P has held on to the 1,300 level, though. Being as the CBOE Volatility Index is considered the best gauge of fear in the market, he also thinks it's positive the VIX hasn't "exploded" higher.
"I'm inclined to say we hold 1,300, but if we don't, I think 1,275 happens very quickly," Adami said.
Steve Grasso of Stuart Frankel also thinks 1,300 will hold. He would buy in the market.
"The real crucial level for me comes in at 1,275," Adami continued. "We break through there, a lot of these stocks that had been leaders will start leading on the downside."
The 1,275 level was the bottom reached during the Egyptian unrest, Grasso said. Should the S&P fall to 1,275, Grasso thinks it could then head to 1,228, which was the previous high reached in April 2010.
