The S&P closed higher on Tuesday with bulls cautiously hopeful that the rout in commodities was over.
Energy and materials closed in the green after news of a trade surplus in China eased fears about slow global growth and helped to support the market.
"I think the market has absorbed most of the negative news to date and should push higher based on the fact investors are focused on earnings recovery and growth," says Jay Leupp, who manages $30 million in assets as president and portfolio manager at Grubb & Ellis AGA Funds in a Reuters interview.
Leupp sees "at least 3-5 percent more upside in the near term" before any kind of market correction takes place.
Are we starting to see signs that commodities have stabilized? Could they even drive the stock market higher?
Instant Insights with the Fast Money traders
Fast Money trader Brian Kelly is bullish on on the markets because he thinks China's latest economic numbers released overnight will provide confirmation that global growth remains in tact. "The OECD said the leading indicators in China are starting to re-accelerate." And Kelly's thesis suggests that anything that gets China going should get commodities going.
Trader Stephen Weiss is also constructive. “Don't forget about the demand cycle globally," he says. He also thinks "the bulls case in commodities is in tact."