OptionMonster co-founder Pete Najarian provides options picks Monday, Wednesday and Friday in TheStreet.com's Deep in the Money Calls newsletter.

Guy Adami, stocks editor at OptionMonster.

For awhile I've been saying to wait for the S&P 500 to pull back to 870 before buying. Guess what happened today? We fell exactly to that level and bounced.

Am I a genius? No. Can I see into the future? I wish. Am I patient? A little.

Have I learned discipline from watching the market -- and learning the hard way -- for years? Yeah, that's a little closer to the truth.

A market like this is all about sentiment. When banks are getting propped up by the government and unemployment is spiking to levels unseen in decades, you have to be a trader. That's not to say that the rules of fundamental analysis don't apply, because they will over the longer term. But when we're hours before the release of the first big earnings report ( Alcoa ( AA)) and all the signals in every direction are murky, it's hard to be too much of a fundamentalist.

You have to look for the key levels on the charts and recognize that the pros are looking at the same thing. They deploy millions of dollars in other people's money by hitting a button. If the price action guides them, you want to do the same thing.

Why did I call the 870 level? Three reasons: Jan. 28, Feb. 9 and the last few days of April. On each of those occasions, 870 was a key level for the market.

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