Market Insider

Rally could continue but analysts see a fizzle

The rebound in stocks could continue for the time being, but some analysts say it would not be surprising to see the market trip up soon.

Stocks have been on the mend since late last week, and as of Wednesday staged their best three-day performance since August. For the and the Dow, it was the first three-day win of the year, and for the S&P it was the first time since 2011 it was up three days in a row with gains of 1 percent or more.

Stock futures were higher Thursday as oil rallied.

"I'm a little watchful to see how we continue from here. What a lot of people are saying is it's just a bear market rally. It's a countertrend rally," said Sam Stovall, U.S. equity strategist at S&P Global Market Intelligence. "We went 44 months without a correction of 10 percent or more. When we went 30 months or longer, the average decline was more like 20 percent. ... If we only get down 14 percent I think we got off easy this time. I would not be surprised to see us go up to around the 1,950 area on the S&P 500 and then retrace some steps, and then maybe establish an even lower low but stay within the correction zone of 10 to 20 percent."