"Up until yesterday we had been bearish risk assets," says BAML head of global technical strategy MacNeil Curry. "Yesterday's [S&P 500] close above 1,823 says that view is WRONG and that the larger uptrend has resumed."
The recent rally, he says, sets the market up for a test of the highs at 1,850 and perhaps the long-term channel of 1,872.
"We had the impulse of decline from the highs of 1,850, fairly negative seasonals, and a pretty sharp deterioration of breath. With all of that, I was pretty confident we would head lower and probably take a run at 1,711. ... That we've then reversed as hard as we have and started to trade quite bullishly says I'm wrong ... [it's] really frustrating ... this is the nature of the biz."
Fast Money fave Carter Worth, however, is staying bearish. The S&P 500 may have bounced, he says, but big names such as Home Depot, Citigroup, and Starbucks continue to roll over. "The only way the S&P stays in an uptrend is that you have these steep circus freaks like Facebook. But it's the message of parts deteriorating that I think is the important thing."