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Steve Grasso: Buy Programs Could Erupt at This Key S&P Level

Stocks climbed on Friday with optimism prevailing on Wall Street ahead of the big EU summit that some believe could go a long way in removing one of the biggest overhangs for markets – the financial crisis.

In recent days bulls seemed to have had the upper hand and successfully pushed the S&P higher, even on days when financials markets overseas performed rather poorly.

However, now the S&P 500 is flirting with the top end of its trading range with 1230-1250 a previous level of strong resistance.

How will you know if the market is about to break out?

Trader Steve Grasso says put 1257 on your radar and watch the S&P closely at it approaches that level.

”1257 is flat on year,” he explains. “If we can hit that level, buy programs will erupt.”

Trader JJ Kinahan agrees that will be a key market ‘tell.’ However he also says as the S&P approaches the 1245 level he expects resistance to be very, very strong.

”Until we get above 1245 I find it hard to say buy. Monday and Tuesday will tell the tale if we should be bullish.”

What do you think? We want to know!

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Trader disclosure: On Oct 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long C; Najarian is long BX; Najarian is long MSFT; Najarian is long AAPL; Najarian is long WFT; Najarian is long CLF; Najarian is long X; Grasso owns AA; Grasso owns AKS; Grasso owns ASTM; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns KEG; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Karabell is long AAPL; Karabell is long GOOG; Karabell is long MS; Karabell is long IBM; Karabell is long MSFT; Karabell is long SLB; Seymour owns INTC; Seymour owns MSFT

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