US stocks show 'incredible resilience': Trader

Despite uncertainty surrounding China, collapsing commodities and an impending rate hike, one technician says he sees the market hitting new highs by year-end.

"We have not seen such a tight market, despite such turbulence that we've seen in the global economy, in some time. This market is showing an incredible amount of resilience," Todd Gordon said Wednesday on CNBC's "Power Lunch."

China's Shanghai composite index has been bumpy in recent months as the country's economy slows, and has lost more than 4 percent this week. Commodities such as gold and crude oil have traded near multiyear lows in the past month.

U.S. stocks saw a strong selloff Wednesday morning, but rebounded temporarily after minutes from July's Federal Reserve meeting suggested further delays to raising interest rates. The Dow Jones industrial average and the S&P 500 both closed down almost 1 percent.

Gordon said the S&P continues to trade in a tight range above previous support levels. He said he sees the index reaching above 2,200 by the end of the year. The S&P has risen about 1 percent year to date, and closed Wednesday at 2,079.

Read More Stocks close lower amid volatile trade on Fed, China & oil

"Just the fact that we haven't broken down with so much turbulence is suggesting that that logical approach will emerge," he said.

Larry McDonald, managing director at Societe Generale, is not as bullish.

He said Wednesday that the biggest challenge facing the U.S. stock market is turmoil in China and potential credit defaults. He compared this situation to risk from emerging markets in 1998, in which the S&P 500 dropped 22 percent from July to September.

"The Chinese slowdown is impacting the many markets around the world, and that is presenting a risk to the U.S.," McDonald said. "U.S. equity rallies are suspect until we see a meaningful improvement in credit."

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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