The U.S. stock market shook off the recent sell-off and rose sharply on Tuesday, but that doesn't necessarily mean it's time to celebrate yet, trader Matthew Cheslock told CNBC.
The Dow Jones Industrial Average closed up more than 500 points on Tuesday. However, Cheslock pointed out that the blue-chip index hasn't regained all it lost in the recent sell-off.
"We're not out of the woods yet," he said on "Closing Bell."
Cheslock, an equity trader at Virtu Financial, said markets were oversold after last week's rout so equities are now being bought.
"It doesn't really give us an indication if the market is going to go higher or hit all-time highs. This is probably some kind of smaller bounce in between," he noted.
Last week's sell-off was brought about, in part, by concern over rapidly rising interest rates and a possible global economic slowdown. The major indexes suffered their worst weekly loses since March.
On Tuesday, the Dow posted its best day since March after positive earnings reports from some of the largest U.S. companies.
The Dow is now up 3 percent from last week's lows thanks to Tuesday's gains and Friday's rally.