“I think the bulls can take the S&P to 1422 – the spring high,” adds Adami. “That's about 20 more S&P handles. But at 1422 the bulls will have to prove themselves and I’m not sure they can.”
“I agree that 1422 level is key,” adds Mike Murphy, founder and managing partner at Rosecliff Capital. However he thinks at that level momentum may remain on the upside. “Jefferies wrote about strong S&P calling buying with August expirations. That suggests to me that a small rally could explode into something bigger.”
Adami just doesn't see it - even with all the call buying. "Enjoy the rest of the ride – I don’t think it will be all that long in duration."
Posted by CNBC's Lee Brodie
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Trader disclosure: On August 7, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Mike Murphy is long DNKN; Mike Murphy is long SBUX; Steve Weiss is long X; Steve Weiss is long WLT; Steve Weiss is long QCOM; Steve Weiss is long JPM; Steve Weiss is long CAT; Steve Weiss is long WLP; Steve Weiss is short AAPL PUTS; Steve Weiss is short JCP; Brian Kelly is long CAT; Brian Kelly is long WY; Brian Kelly is long MON; Brian Kelly is long EUROSTOXX 50; Brian Kelly is long WFC; Brian Kelly is long XHB; Brian Kelly is long USG
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