Market Insider

Expect pre-weekend caution after head fake rally

VIDEO3:0203:02
Uncertainty = new normal

Traders head into Friday cautious about next week's Fed meeting and wary of any attempts by the market to rally.

Stocks closed higher Thursday but well off earlier highs. The ended up a half percent at 1,952, after an earlier 1.2 percent move higher, and the Dow added 76 points to 16,330.

"Everyone is trying to figure out where the market is comfortable," said Scott Redler, partner with T3Live.com. "Typically after two to six weeks of making a dramatic low, it's likely you revisit it. I think traders are a little skeptical of trying to buy the dip. Why be a hero here? On the flip side, we're still not falling apart so we do get these rallies that push the shorts back."