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Markets Needed EU Bazooka, Only Got a Water Pistol: Fast Pros

On Friday, pro traders were taking a hard look at developments in Europe and whether the overseas crisis had finally turned a corner.

After a much anticipatedEU summit, European Union leaders agreed on measures to address the region's sovereign debt crisis by enforcing stricter fiscal and financial discipline in their future budgets.

Both the Dow and S&P rallied on the news, with investors hopeful that leaders were getting more aggressive in their efforts to contain the EU crisis.

As bullish as the action appears on the surface, Fast Money pro Steve Grasso thinks it would be a mistake to interpret it too positively. “The S&P should have rallied more on this news,” he says. But it didn't. ”The 200-day moving average, which is now at 1263, remains a level of serious resistance,” he says.

Trader Patty Edwards concurs. Although European lawmakers made advances she says, “we needed a bazooka and we got a water pistol.” By that Edwards means European Central Bank dashed hopes for additional bond buying.

“All told, we’re still in an environment of buy the rumor and sell the news,” Grasso says.

Both agree that a major market pattern remains intact – that is, positive developments in Europe drive the S&P higher but then gains don’t hold, and after a few days the market sells off

And it’s not just Europe that leave Edwards and Grasso a little cold.

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They also see cause for concern in the form of warnings from Texas Instruments and DuPont. Both firms cited slower growth and waning demand. “These are major companies,” reminds Edwards. “After listening to what they said, I don’t like the way the market is setting up for the long-term.”

Trader JJ Kinahan agrees long-term but in the short term he thinks the market could rally into year’s end, largely due to a chase for performance.

”I think the holiday season will be good for stocks – I expect to see a run at S&P 1300 –but then I also am looking for a holiday hangover in January.”

Trader Zach Karabell is more optimistic. He thinks developments could finally drive Europe off the front page – and that alone he feels is bullish. And he thinks long-term, the global growth story remains strong.

Grasso just can't get behind it. He says, if you're bullish "watch 1263, the 200-day. I’d wait to see if the market can close above that level for a couple days before I’d play the S&P for 1300."

What do you think? We want to know!

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Trader disclosure: On Dec 9, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders;
Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; 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 IBM

For Steve Grasso
Stuart Frankel & Co and it’s partners own CSCO
Stuart Frankel & Co and it’s partners own CUBA
Stuart Frankel & Co and it’s partners own GERN
Stuart Frankel & Co and it’s partners own HPQ
Stuart Frankel & Co and it’s partners own HSP
Stuart Frankel & Co and it’s partners own HSPO
Stuart Frankel & Co and it’s partners own MET
Stuart Frankel & Co and it’s partners own MSFT
Stuart Frankel & Co and it’s partners own MU
Stuart Frankel & Co and it’s partners own NYX
Stuart Frankel & Co and it’s partners own PRST
Stuart Frankel & Co and it’s partners own UAL
Stuart Frankel & Co and it’s partners own XRX

For Zach Karabell
Rivertwice is short XLF
Rivertwice is short Smh
Rivertwice is long DD

For Patty Edwards
Trutina Financial is long APPLE (AAPL)
Trutina Financial is long SPDR GOLD TRUST (GLD)
Trutina Financial is long MICROSOFT (MSFT)
Trutina Financial is long INTEL (INTC)
Trutina Financial is long TEXAS INSTRUMENTS (TXN)
Trutina Financial is long DUPONT (DD)
Trutina Financial is long BERKSHIRE HATHAWAY (BRK)
Trutina Financial is long COSTCO (COST)

For Willie Williams
No disclosures

For Jeff Kilburg
No disclosures

For Greg Zuckerman
No disclosures

For Meyer Shields
No disclosures




CNBC.com with wires.