Traders are looking for a bounce, but…

Stocks are set to bounce, but investors shouldn't expect any great advance in the weeks ahead, according to macro trader Larry McDonald and technical analyst Craig Johnson.

"In the very short term, we're extremely oversold," McDonald, the head of U.S. strategy for Societe Generale's macro group, said Thursday on CNBC's "Power Lunch." "We're going to bounce."

"But then over the next month," he added, "so much damage has been done technically that we'll probably retest these lows within the next 30 days or so."

Read MoreNo, stocks aren't cheap just yet

"We're a little short-term oversold, I'd look for a bounce," Johnson, of Piper Jaffray, agreed. "A lot of fund managers ... came into 2016 fairly flat and this is probably good for them, for an opportunity to jump in on a little more weakness. So look for a relief rally."

After that, however, "we're going to see some further consolidation and retesting," Johnson said.

Technical support for the S&P 500 ultimately comes in "at about 1,880 and 1,820, and then you can start valuing this market on a traditional P/E-type basis to see where you find your ultimate support."

In other words, a bounce may be around the corner — but that doesn't mean stocks are out of the woods just yet.

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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.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

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