The S&P 500 enjoyed a big reversal on Tuesday, recovering from a 25-point deficit to turn a 12-point rally. That's the biggest reversal for the large-cap index in nearly a year. And according to one noted technician, that's a great sign for the market's next move.
"It looks to us like we're finding some footing here, at least short term, and to us, it's a very good sign when the market sells off hard in the morning and starts to claw back those losses at the end of the day," said Craig Johnson, senior technical research analyst at Piper Jaffray and the president of the Market Technicians Association.
The snap back "tells me people want to own this market despite all the negative sentiment we are hearing out there constantly day in and day out about Greece, and China, and other markets," he said Tuesday on CNBC's "Power Lunch."
Johnson also notes that the S&P 500 has managed to bounce off of the 200-day moving average, a line that averages the 200 most recent closes, as well as a key trend line.