Stocks took a little bit of hit early Friday after reports of combat in eastern Ukraine between Russian and Ukrainian troops. However, the market quickly rebounded, and the benchmark S&P 500 index successfully logged its best week since the beginning of July.
Is that a sign that it's safe to jump into stocks?
Gina Sanchez, founder of Chantico Global, says that investors aren't going whole-hog just yet, but are hanging on to more cash. Down the road, "that could cause some pent-up buying demand, she said. "But for right now, I would say that investors are very wary, and there is definitely a concern that the economic recovery may not be as robust as we are expecting."
Recent economic data have been a mixed bag, according to Sanchez, a CNBC contributor. Retail sales in July were flat compared with June. But a recent survey of economists by Philadelphia's Federal Reserve showed a slight uptick in third-quarter growth estimates.
"We're still in a wait-and-see mode," Sanchez said. "I don't think we're through this" recent downdraft.
On the other hand, Katie Stockton, chief technical strategist at BTIG, is optimistic about stocks.
Using an indicator that measures where the S&P 500 closed relative to its price range over the previous 12 days, Stockton makes a case that the index has bottomed out.
"Over the last 12 days, we gotten very oversold," Stockton said. "That, of course, yielded a short-term low. Even if we see a retest next week on geopolitical concerns – which is certainly a possibility with the lack of volume we've seen in the marketplace and the resulting skittishness – I would be buying into weakness."
To see the full discussion on what's next for stocks, with Sanchez on the fundamentals and Stockton on the technicals, watch the above video.