×

Teflon Market: Everything Bounces Off It

Despite a string of negative catalysts ranging from Europe’s financial woes to unrest in the Mideast the S&P continued its march higher on Thursday.

In fact, positive sentiment prevailed so widely that the bulls were able to drive the S&P 500 above a key technical level.

Specifically, bulls pushed the S&P 500 above its 50-day moving average at 1,305, leading technical investors to speculate that the market may have absorbed the worst of its recent pullback.

According to Ken Polcari, managing director at ICAP Equities in New York the S&P's 50-day moving average had acted as a point of resistance for the last week and a half. A close above 1,305 should be interpreted as a bullish signal in the short-term.

Others on the Street share Polcari’s optimism.

"Yes, there are legitimate concerns. Yes, there are legitimate headline risks," says Phil Orlando, chief equity market strategist at Federated Investors, in a Reuters interview.

"But it's entirely possible the market feels comfortable. That this 7 percent correction we saw from mid-February into mid-March has priced those concerns in, and now we are starting to look forward to the prospect of continued economic growth and solid first-quarter profits."

What should you make of the moves?

Instant Insights with the Fast Money traders

Guy Adami suggests that recent gains were triggered by short covering. “This last 25 points in the S&P caught a lot of people off guard and I’m one of them” he says. “And now we’re getting a lot of covering.”

However he concedes that the path of least resistance is now higher. “You have to allow the tape to tell you what’s happening and the tape is saying the S&P wants to go back to 1325.”

Steve Cortes is looking to sell the market. However, he's not ready to pull the trigger yet because of strength in metals. “If we start seeing negative momentum in gold and silver then I think we can see the S&P turn lower too,” he says.

Joe Terranova thinks Thursday's gains were about a re-allocation. He thinks investors put money to work in technology and some other laggards on a bet they play a game of catch-up.





______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our Web site send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On March 24, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Guy Adami is Long (AGU); Guy Adami is Long (MSFT); Guy Adami is Long (C); Guy Adami is Long (INTC); Guy Adami is Long (NUE); Guy Adami is Long (GS); Guy Adami is Long (BTU); Steve Cortes is Long (TM)p; Steve Cortes is Long (EXC); Steve Cortes is Long (GS); Steve Cortes is Long (SO); Steve Cortes is Short (F); Steve Cortes is Short (BAC); Steve Cortes is Short (DBA); Steve Cortes is Short Natural Gas; Steve Cortes is Short Silver; Steve Cortes is Short Wheat; Steve Cortes is Short Corn; Steve Cortes is Short Beans; Steve Cortes is Short Japanese Yen; Joe Terranova is Long (C); Joe Terranova is Long (VRTS); Joe Terranova is Long (GS); Joe Terranova is Long (JPM); Joe Terranova is Long (UPL); Joe Terranova is Long (MS); Joe Terranova is Long (PBR); Joe Terranova is Long (BAX); Joe Terranova is Long (TEVA); Joe Terranova is Long (IBM); Joe Terranova is Long (BTU); Joe Terranova is Long (POT); Joe Terranova is Long (XOM); Joe Terranova is Long (DIS); Joe Terranova is Long (RSX); Joe Terranova is Long (CNQ); Joe Terranova is Long (CNX) Puts; Tim Seymour is Long (AGU); Tim Seymour is Long (BAC); Tim Seymour's Firm is Long (POT)

For Brian Kelly
Accounts managed by Kanundrum Capital Are Long (TLT)
Accounts managed by Kanundrum Capital Are Long U.S. Bonds
Accounts managed by Kanundrum Capital Are Long (GLD)
Accounts managed by Kanundrum Capital Are Long (SLV)
Accounts managed by Kanundrum Capital Are Long Gold
Accounts managed by Kanundrum Capital Are Long Corn
Accounts managed by Kanundrum Capital Are Long Soybeans
Accounts managed by Kanundrum Capital Are Long Wheat
Accounts managed by Kanundrum Capital Are Long Euro
Accounts managed by Kanundrum Capital Are Long (VLO)
Accounts managed by Kanundrum Capital Are Long (RDC)|
Accounts managed by Kanundrum Capital Are Long (MCP)
Accounts managed by Kanundrum Capital Are Short Yen
Accounts managed by Kanundrum Capital Are Short (XLF)
Accounts managed by Kanundrum Capital Are Short (IXG)

For Dennis Gartman
Funds managed by Dennis Gartman are Long Gold
Funds Managed by Dennis Gartman are long Oil
Funds Managed by Dennis Gartman are long Canadian Dollars
Funds Managed by Dennis Gartman are long Australian Dollars
Funds Managed by Dennis Gartman are long Corn
Funds Managed by Dennis Gartman are long Sugar
Funds Managed by Dennis Gartman are long Natural Gas
Funds managed by Dennis Gartman are Short Euros

For Rich Volpe
**No Disclosures**

For Colin Gillis
**No Disclosures**

For Scott Nations
Scott Nations is long (SPY)

For Heather Jones
BB&T Capital Markets is a Market Maker in (SFD)
BB&T Capital Markets is a Market Maker in (TSN)
BB&T Capital Markets expects to receive or intends to seek compensation for investment banking services from Smithfield Foods, Inc. and Tyson Foods, Inc. in the next three months.
An affiliate of BB&T Capital Markets received compensation from Smithfield Foods, Inc. and Tyson Foods, Inc. for products or services other than investment banking services during the past 12 months. The analyst or employees of BB&T Capital Markets with the ability to influence the substance of this report know or have reason to know the foregoing facts.




CNBC.com and wires