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Traders fishing for a bottom

Wednesday's rally will need to continue Thursday and into the end of the week before many analysts find more confidence that the stock market is firmly on its way upward.

"The bulls and bears are fishing for positions as we head into the September Fed meeting," said David Schiegoleit, managing director of investments at the U.S. Bank Private Client Reserve.

"The bears may want to retest those lows before we get (to a fourth-quarter rally)," he said.

He's keeping an eye on the Challenger Grey job cut report at 7:30 a.m., ET, and the natural gas inventories at 10:30 a.m.

"Other than that we're really holding our breath until Friday's jobs numbers," Schiegoleit said.

Other data on tap include weekly jobless claims at 8:30 a.m. and the ISM non-manufacturing index at 10:00 a.m.

The number of bulls fell to just one percent above that of bears, for the fewest number of bulls since March 2009 , according the Investors Intelligence's Adivsors Sentiment.

More bears could indicate fewer sellers and a higher trajectory for stocks going forward.

"It's a good time to be a buyer of risk," said Eddie Perkin, chief equity investment officer at Eaton Vance. "As an investor, you have to lean in and buy things that are on sale when there's fear in the market."

One of the areas he's looking into is large cap tech stocks.

Robert Pavlik, chief market strategist at Boston Private Wealth, said he's still hearing too much talk of people wanting to get back into the...


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