"The market seemed to have room for an oversold bounce, and the selloff at the end of the day was people saying they didn't want to deal with overnight risk.
The bulls overcame one obstacle, closing above Friday's high," said Scott Redler, partner at T3live.com. He said the next target for the S&P on the upside is 1,952/1,950—a level that was significant when the S&P fell through it, and it could now become a zone of resistance.
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On the downside, technicians were eyeing the 1,900 level as a next stopping point had the S&P fallen further. Massocca said he would like to see it hit 1,865, opening a buying opportunity. "Recent history is you buy them here," he said, commenting on the string of shallow market selloffs. Stocks have not had a more than 10 percent correction since October 2011.
"I think there's still some skepticism out there on what's next. It's hard to be convinced that Friday's low is the summer low," Redler said. Encouraging signs were the fact that technology has been holding up, he said.
Massocca said overvalued momentum stocks are a problem for the market. "My view is that needs to get washed out and you keep an eye on these excesses," Massocca said.
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What to Watch
ISM nonmanufacturing data is expected at 10 a.m., as are factory orders.
Earnings released before the bell include CVS Caremark, Toyota, Archer Daniels, Coach, MGM Mirage, Liberty Media, Regeneron and Scotts Miracle-Gro. Disney, Activision Blizzard, FireEye, Zillow, Groupon, and Take Two Interactive report after the closing bell.
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—By CNBC's Patti Domm