The first quarter comes to an end this week, and that could bring in buyers looking for bargains in some of the beaten-down sectors but also among the winners.
In fact, end-of-quarter buyers may have helped stem some of the losses in the stock market Monday, as investors initially sold on the failure of Congress and the White House to reach a deal on health care.
For Tuesday, investors are watching a number of Fed speakers, including Fed Chair Janet Yellen, who speaks on workforce development challenges at 12:50 p.m. ET, and Fed Vice Chairman Stanley Fischer, who appears on CNBC at 1:30 p.m. There is also a batch of data, including advance economic indicators at 8:30 a.m. ET, S&P/Case-Shiller home prices at 9 a.m., services PMI at 9:45 a.m. and consumer confidence at 10 a.m.
"Traders are looking for good entries and thinking we'll have a little bit of a bounce at quarter's end," said Scott Redler, partner with T3Live.com. Redler said window dressing, or the process where fund managers put the best face on their holdings, played a role in the turnaround in Monday's session.
In fact, the buying started in tech and moved into some very oversold names, Redler said. The Dow had been down sharp triple digits but closed off down just 45 points at 20,550, its eighth decline in a row, while the S&P was off just 2 points at 2,341, after recovering nearly 20 points. The Nasdaq, lifted by tech, rose 11 to 5,840.