The S&P 500 index is still in a higher trend and if it breaks past the 950 level, it is likely to extend the rally toward 1,000, according to Chris Locke, MD of Oystertrade.com Management. But the index is still in a bear market, he added.
"Overall, I see this as broad sideways consolidation within an overall bear market. So, this is not a bull market for me," Locke said. "The extent of this consolidation could last into August."
If the S&P remains in the 880 to 850 region, "then the short-term trend remains up." But if the index reaches the 950 level, it could extend the rally towards 1,050, or even 1,120, Locke told CNBC, although he said he thinks it would be unlikely to do so at the moment.
But the index will remain "firm into the period of August," Locke noted.
"After that, I see some weakness coming back in, with the worst part of this into 2010," he said. "The best of the rallies have been seen."
In addition, New York light crude is likely to move up to $75 a barrel by the end of the year, Locke told "Squawk Box Europe."
"I expect crude oil to remain firm through most of the year, probably into December," he said.
Risk Rally Could Take S&P to 1,000: Strategist
In the near-term, we're likely to see the stock market rally and the risk-asset price rally continue through the Northern Hemisphere's summer, Benjamin Pedley, MD and investment strategist at LGT Investment Management in Asia, said Wednesday.
"This is very much a relief bear-market rally," he added.
In terms of the S&P 500 index, Pedley sees the rally extending to the 1,000 level, possibly even 1,050.
"The risk rally could continue. But whether it's sustained, I very much doubt because some of the improvements that we've seen in sentiment readings are coming from a very low base and people became basically immune to very bad news over the past year or more," Pedley told CNBC.
"One would expect that the markets are more set up for disappointment in a couple of months rather than likely to be surprised to the upside."
"This is more of a rally to sell into, rather than one that we should be trying to jump on and try and extract the last 10 to 15 percent out of," he added.