Recent market moves have left traders with the sensation of visiting an amusement park, said Art Cashin, director of floor operations at the New York Stock Exchange for UBS.
"It's kind of like commuting by roller coaster, you know? Lots of twists and turns and terror and you end up pretty much where you started and it cost you money," he told CNBC's "Squawk on the Street" on Monday.
The Dow Jones industrial average followed up a triple-digit drop on Friday with a more-than-200-point move to the upside on Monday. The also rose above 2,100 on the first day of the trading week.
Cashin said he is keeping his eye on resistance levels in the range of 2,094 to 2,098 on the S&P 500, adding that earnings will be a key factor in the next potential move upward.
Earnings weakness has been concentrated in energy and basic materials, but most S&P results are looking OK, said Barry Bannister, Stifel Nicolaus chief equity strategist.
In his view, markets have historically shrugged off small changes in earnings growth trends. What markets need now is for reflationary policies to get some traction, he added.
Bannister would particularly like to see the European Central Bank's stimulus program lead to growth and more stability out of China, where the central bank is trying to hit growth targets without overheating parts of the economy.
He is watching for recent correlations in the market to shift heading into the second half of the year, noting that an up market previously came with weak commodity prices, a strong dollar and a falling 10-year Treasury yield.
"Now all that's reversing. We want the 10-year yield to stabilize, we want commodities to bottom and we want the dollar to top," Bannister told "Squawk on the Street."
The biggest potential bounce could happen in the energy sector as the dollar starts to peak, he said.
While the oil market is somewhat oversupplied, Bannister believes the price is fully reflecting the negative fundamentals for after a 50 percent year-over-year fall for the benchmark. By the end of the year, he sees Brent stabilizing around $65 to $70.
Global industrials could also pick up if companies resume capital spending late in the cycle, Bannister said. The sector may also offer investors an alternative to consumer discretionary and consumer staples, which have dominated the safety trade.
"On discretionary, the middle-class consumer is going to benefit from the cheaper energy and rising wages, so there's nothing wrong with being in discretionary, you just have to be very selective," he said, adding that he would avoid the luxury end and low end.