The S&P 500 could stage a festive rally above 1,000 points if it manages to close above its post-Thanksgiving high of 896 points, Phil Roberts, technical analyst from Barclays Capital, told CNBC.
"The US equity market is showing a few signs here that we could be on the verge of a temporary recovery … It looks to be setting up for a bounce," Roberts said.
"The authorities are throwing everything at stopping this global slowdown and they need a degree of reciprocation from investors to buy into their concept and just put a bit more confidence back in the market," he said.
If the S&P does rally, it will only be a bounce in an overall bear market, Roberts said.
A Santa rally on the S&P could depend on the direction of commodities, according to independent trader Bill McLaren.
"Commodity markets may be on the brink of another fast trend down and if that's the case they're going to take stocks with them," McLaren told CNBC when considering the S&P 500.
(Watch Phil Roberts on CNBC above and click here for Bill McLaren's interview >>>).
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