Has S&P Just Put in a Short-Term Bottom?

By the end of trading on Tuesday you could almost hear Wall Street breathe a collective sigh of relief. Although the session could have been an absolute a blood bath, it wasn't.

The morning looked rather bleak, as investors grappled with reports that Japan was doing everything possible to avert a nuclear catastrophe after a crippled reactor at the nuclear complex in Fukushima exploded and sent low levels of radiation floating toward Tokyo.

Those reports sent the Dow nearly 300 points lower, however the blue chip index closed well off the worst of the day.

The S&P made a similar move, it fell early in the session, then bounced and ultimately pared losses into the close.

The relative strength was partly due to positive comments from the Fed. The central bank said the U.S. recovery is gaining traction and inflation pressure from soaring energy costs should be short-lived. The Fed also decided unanimously to forge ahead with its $600 billion bond-buying plan.

Have stocks put in a short-term bottom? How should you position now?

Instant Insights with the Fast Money traders

Jon Najarian thinks the market may have put in a short term bottom and suggests being greedy when others are fearful. “A breakdown toward 1258 is a buying opportunity,” he says. Looking at fundamentals, he thinks Japan will be back on it feet “faster than most people think."

Trader Steve Cortes also finds the resilience in the market on Tuesday to be noteworthy. Although stocks closed negative, he's impressed by now much they’re off the lows. With the bounce holding into the end Cortes says, "I think the US market continues its lift higher."

Karen Finerman makes a similar argument. She suggests that the market may be oversold. “At some point the market was close to being down 5% for the month; that’s a lot,” she says.

Host Melissa Lee notes that 1275 has been a key level for chart watchers, "the Egypt bottom." So far that level seems to be support. And if that doesn’t hold the next level to watch is 1257, “that’s flat on year,” according to trader Steve Grasso.

Guy Adami agrees that 1275 is key technically but he’s not convinced that 1275 holds. “I’m not convinced we have a short term bottom,” he says. “I’d shoot against it. I think we get down to 1220.”

Brian Kelly shares Adami’s skepticism. He says “if we get a rally don’t get sucked into it. You’re better off selling into the rally.” After examining chart patterns, he doesn’t thinks the market will put in a significant bottom unless it trades down to the 200-day.

And on a related note if you’re watching the sell-off in gold , strategic investor Dennis Gartman thinks a buying opportunity may be near. Although he wouldn’t be surprised to see gold trade down to 1375 longer term he thinks this precious metal resumes its trend from the lower left to the upper right.

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Trader disclosure: On March 15, 2011, 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 (VRTS); Terranova Owns (C); Terranova Owns (GS); Terranova Owns (PNC); Terranova Owns (USB); Terranova Owns (JPM); Terranova Owns (UPL); Terranova Owns (ABT); Terranova Owns (MS); Terranova Owns (PBR); Terranova Owns (BAX); Terranova Owns (TEVA); Terranova Owns (IBM); Terranova Owns (BTU); Terranova Owns (CNX); Terranova Owns (POT); Terranova Owns (FCX); Terranova Owns (XOM); Terranova Owns (DIS); Terranova Owns (MCD); Terranova Owns (CVE); Terranova Owns (CVI); Terranova Owns (RSX); Terranova Owns (SU); Terranova Owns (CNQ); Adami Owns (AGU); Adami Owns (BTU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (XRT); Finerman's Firm Is Long S&P 500 Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (FDO); Finerman's Firm And Finerman Own (GLNG); Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (IBM); Finerman's Firm Owns (M); Finerman's Firm Owns (MCD); Finerman's Firm And Finerman Own (MSFT); Finerman's Firm Is Short (SPY); Jon Najarian Owns (AKAM), Is Short (AKAM) Calls; Jon Najarian Owns (CRM), Is Short (CRM) Calls; Jon Najarian Owns (CCJ), Is Short (CCJ) Calls; Jon Najarian Owns (CBOE) Is Short (CBOE) Calls; Jon Najarian Owns (CME) Is Short (CME) Calls; Jon Najarian Owns (NYX), Is Short (NYX) Calls; Jon Najarian Owns (DNDN), Is Short (DNDN) Calls; Jon Najarian Owns (EWJ), Is Short (EWJ) Calls; Jon Najarian Owns (TM), Is Short (TM) Calls

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (KRC)
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Virtus Investment Partners Owns More Than 1% Of (LPHI)
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Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
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Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (DOM)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (TLT)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Are Long U.S. Bonds
Accounts Managed By Kanundrum Capital Are Long Copper
Accounts Managed By Kanundrum Capital Are Long U.S. Dollar
Accounts Managed By Kanundrum Capital Own (ATW)
Accounts Managed By Kanundrum Capital Own (RDC)
Accounts Managed By Kanundrum Capital Own (EBAY)
Accounts Managed By Kanundrum Capital Own (EWJ) Puts
Accounts Managed By Kanundrum Capital Own (XRT) Puts
Accounts Managed By Kanundrum Capital Own (XLF) Puts
Accounts Managed By Kanundrum Capital Are Short Australian Dollar
Accounts Managed By Kanundrum Capital Are Short (EWJ)
Accounts Managed By Kanundrum Capital Are Short (EWY)
Accounts Managed By Kanundrum Capital Are Short (XRT)
Accounts Managed By Kanundrum Capital Are Short (XKF)
Accounts Managed By Kanundrum Capital Are Short (IXG)

For Dennis Gartman
Funds Managed By Dennis Gartman Own Grain ETFs
Funds Managed By Dennis Gartman Own Rice Futures
Funds Managed By Dennis Gartman Are Long Swiss Franc, Short Euro, Short British Pound Sterling
Funds Managed By Dennis Gartman Own Natural Gas Stocks, Are Short S&P Futures

For Itay Michaeli
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (ARM), (BWA), (JCI)
Citigroup Global Markets Or Affiliates Has Managed Or Co-Manged Offering Of (BWA), (GM), (JCI), (LEA), (TOWR) In Past 12 Months
Citigroup Global Markets Or Affiliates Has Recieved Investment Banking Compensation For Services Provided In Past 12 Months From (ARM), (BWA), (GM), (JCI), (LEA), (TOWR)
Citigroup Global Markets Expects To Recieve/Seek Investment Banking Compensation From (ARM), (JCI) In Next 3 Months
Citigroup Global Markets Or Affiliate Recieved Non-Investment Banking Compensation From (ARM), (BWA), (GM), (JCI), (LEA), (MGA), (TOWR) In Past 12 Months
(ARM), (TOWR), (GM), (BWA), (JCI), (LEA) Are Or In Past 12 Months Were Investment Banking Clients Of Citigroup Global Markets
(ARM), (BWA), (GM), (JCI), (LEA), (MGA), (TOWR) Are Or In Past 12 Months Were Non-Investment Banking Clients Of Citigroup Global Markets (Securities-Related Services)
(ARM), (BWA), (GM), (JCI), (LEA), (MGA), (TOWR) Are Or In Past 12 Months Were Non-Investment Banking Clients Of Citigroup Global Markets (Non-Securities-Related Services)
Citigroup Global Markets Or Affiliate Recieved Compensation From (ARM), (TOWR), (GM) In Past 12 Months
Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (ARM), (BWA), (GM), (JCI), (LEA), (MGA)

For Barry Ritholtz
***No Disclosures On EWJ

For Shneur Gershuni
UBS AG, Affiliates Or Subsidiaries Owned 1% Or More Of (BTU) As Of Last Month's End
(ACI), (CNX), (ICO), (NRP), (PCX), (PVR) Are Or In Past 12 Months Were Investment Banking Clients Of UBS Securities LLC
(ICO) Is Or In Past 12 Months Was A Non-Investment Banking Client Of UBS Securities LLC (Securities-Related Services)
UBS Securities LLC Has Recieved Compensation From (ACI), (CNX), (ICO), (NRP), (PCX), (PVR) In Past 12 Months

SOT/Tim Seymour/3/15/11
***No Disclosures

SOT/Jon Najarian/2/15/11
Jon Najarian Owned (WMT), Was Short (WMT) Calls On 2/15/11

SOT/Halftime Play Of The Day
Nomura Securities International Is A Market Maker In (INTC)

SOT/Barry Ritholtz/12/22/10
FusionIQ Owned (EWJ) On 12/22/10

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