On Monday, the pros were trying to figure out what happens next in the market after the S&P appeared to stall out around 1400.
If you follow technicals, you know that 1400 had been a level of resistance for weeks. Although the S&P closed above this key level on Friday, it was not able to sustain the advance on Monday. Technicians say, that's a cause for concern.
The latest economic data doesn't help the bull case.
A private industry gauge showed a much sharper-than expected decline in Midwestern business activity in April suggesting the economy entered the second quarter with less steam.
The overseas environment isn’t much better.
Spain's economy sank into recession in the first quarter as deep government spending cuts and troubles in the banking sector took a toll.
"We have a multiple of issues here. Spain is casting a negative tone in the market here, but (on the other side of the coin) after last week's rally, the market was set for some profit taking," says Tim Ghriskey, chief investment officer at Solaris Asset Management, in A Reuters interview.
Now what?
Trader Steve Grasso says the key levels on Monday are 1406 and 1397 – the high and low from Friday. How the market behaves at those levels will be telling. “If the market breaks, I think we then test the 50-day which is 1384,” he says.
And Grasso also suggests keeping an eye on Apple. “Apple’s 50-day is $580,” he adds. If that level is tested, what happens from there should also inform your thesis.
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Trader disclosure: On Apr 30, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long JNPR; Joe Terranova is long NXPI; Joe Terranova is long JPM; Joe Terranova is long JOY; Joe Terranova is long HPQ; Joe Terranova is long LQD; Jon Najarian is long GS CALL SPREADS ; Jon Najarian is long GLD CALL SPREADS; Jon Najarian is long RIMM CALL SPREADS; Jon Najarian is long MDRX CALL SPREADS; Jon Najarian is long LQMT; Jon Najarian is long CIGX; Jon Najarian is long CBOE; Jon Najarian is long CME; Jon Najarian is long DDMG; Steve Grasso is long ASTM; Steve Grasso is long AVAV; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long NUAN; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long PRST; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Mike Murphy is long HAL; Mike Murphy is long JPM; Mike Murphy is long SBUX; Mike Murphy is long FCX; Mike Murphy is short GPS; Tim Seymour is long TSU; Tim Seymour is long PBR
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