NEW YORK (TheStreet) -- U.S. stocks finally rose on Wednesday, with the S&P 500 closing higher by 1.20%. This got the CNBC "Fast Money" traders wondering whether stocks are setting up for a breakout to new all-time highs.
Right now, it's all about Greece, according to Steve Grasso, director of institutional sales at Stuart Frankel. The country's possible debt deal with the European Central Bank got stocks moving higher, but the joy will likely be temporary. He believes a larger pullback in the market looms ahead.
Grasso also says the recent pop in utility stocks only occurred because the sector has sold off so much in recent trading. He added that a strong U.S. dollar will help small-cap stocks trade higher.
As long as small-caps continue to trade well, the overall market should do fine, according to Guy Adami, managing director of stockmonster.com. Specifically, he says the iShares Russell 2000 ETF (IWM) needs to stay above $121 to keep the rally intact.
"People are very concerned about the Fed" and when it plans to increase interest rates, added Tim Seymour, managing partner of Triogem Asset Management. The impressive labor data are making a strong case for a sooner-than-expected rate hike, which is apparent by the rally in bond yields. Because of higher yields, Seymour is a seller of small cap stocks. However, across the pond, he's a buyer of German equities, which should outperform as the euro goes lower.