On Wednesday the bulls were eager to find a catalyst that could contain the selling and prevent the S&P from closing with 5 consecutive days of declines.
But they may be looking at a case of ‘be careful what you wish for’ because what they got may be something of a double edged sword.
Largely, it was the energy sector that helped buoy the S&P 500.
Buyers gobbled up Exxon and other integrated names after oil prices shot higher on news OPEC talks in Vienna broke down without an agreement among the nations to increase production, as had been expected.
"We were unable to reach an agreement -- this is one of the worst meetings we have ever had," Saudi oil minister Ali al-Naimi said after failing to convince other members to lift production.
Although energy helped drive the S&P for most of 2011, strength in this sector could do more harm than good as oil again enters the danger zone – above $100 a barrel.
Did OPEC just telegraph that $100 oil is here to stay? What should you expect?
Instant Insights with the Fast Money traders
Largely, the Fast Money traders are all expecting higher crude prices.
Pete Najarian calls the OPEC developments “concerning and a problem.” And not so good for the present recovery.
Energy trader Joe Terranova thinks it shines spotlight on the current deficit of oil in the broad market. Although Terranova anticipates higher crude he doesn’t suggest playing the spot price. Instead he’s bullish Occidental , Exxon , as well as Hornbeck Offshore because he thinks developments will re-ignite interest in off-shore drilling.
