Is the Market Starting to Crack?

On Friday investors were wondering if the stock market was starting to crack, after a slew of negative catalysts surfaced, begging the question have stocks rallied too far too fast.

Again the financial woes of Europe reared up, with developments involving Spain troubling the market. Specifically, the cost of insuringbonds issued by Spain against default hit 500 basis points, a new high.

Also the threat of a serious slowdown in China spooked investors.

New data out of Beijing showed the annual rate of growth in China's gross domestic product slowed to 8.1 percent in the first quarter, the weakest pace in nearly three years, and below the consensus forecast of 8.3 percent.

And here in the United States, the latest consumer sentiment reading showed higher gasoline prices were starting to take a toll. The index slipped to 75.7 in April from 76.2 in March. Economists had expected the index to hold at last month's level.

With so many negatives looming over the market, what should you be watching? Following are the signals that the Fast traders will be looking for.

Strategy Session with the Fast Money traders

Both Pete Najarian and Jon Najarian will be watching moves in the volatility index. “Right now the Vix is trading between the 50-day which is about 17 and the 100-day which is 21,” explains Pete. “If the Vix closes above 21, I’d get nervous but not before.”

Trader Steve Grasso will be keeping a close eye on the S&P. “1370 remains important,” he says. (1370 is the market’s 50-day and a level of strong resistance in 2011. With the market above that level, technical analysis suggests it should be support.)

And if 1370 doesn’t hold, Grasso says watch 1357 “the low from the 10th. If the market can hold that level on weakness – it’s probably in ok shape.”

Trader Mike Murphy takes a much more fundamental approach. “My focus is on earnings. There are a lot of companies in the industrial sector that I think are poised to put up good numbers.”

If that happens, sentiment should turn more optimistic and lift stocks.

What do you think? We want to know!

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Trader disclosure: On Apr 13, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jon Najarian is long call spreads in INTC; Jon Najarian is long call spreads in IBM; Jon Najarian is long call spreads in HFC; Jon Najarian is long call spreads in MRO; Jon Najarian is long call spreads in SBUX; Jon Najarian is long call spreads in BRCM; Jon Najarian is long put spreads in GOOG; Jon Najarian is long CIGX; Jon Najarian is long CME; Jon Najarian is long CBOE; Pete Najarian is long AAPL; Pete Najarian is long AAPL CALLS; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long MS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long SBUX CALLS; Pete Najarian is long COP; Pete Najarian is long PEP; Steven Grasso is long ASTM; Steven Grasso is long AVAV; Steven Grasso is long BA; Steven Grasso is long D; Steven Grasso is long FRO; Steven Grasso is long MHY; Steven Grasso is long NUAN; Steven Grasso is long MO; Steven Grasso is long PFE; Steven Grasso is long PRST; Steven Grasso is long S; Steven Grasso is long XLU; Steven Grasso is long ZAZA

For Gerard Cassidy
Nothing to disclose

For Ben Schachter
Nothing to disclose

For Nicholas Consonery
Nothing to disclose

For Camilla Sutton
Nothing to disclose

For Brian Kelly
Brian Kelly is long CAF with wires.