Market behavior may be shifting by buy the dips to sell the rallies: Trader

Recent market action may be signaling a shift in behavior which could make which tough for stocks to get back to all-time highs, trader Keith Bliss told CNBC on Thursday.

For the last two trading sessions, the market closed well off its highs of the day. While Wednesday’s late-afternoon action was likely caused by nervousness about an aggressive Federal Reserve, there doesn’t seem to be a real reason for Thursday’s movement some other than “people fading into the close,” he said.

“What I’m becoming concerned about can be we may be shifting by a buy-the-dips to a sell-the-rallies type of market,” the senior vice president of Cuttone & Co. told “Closing Bell.”

The Dow Jones industrial average in addition to S&P 500 snapped a two-day slide on Thursday. The Dow rose as much as 358.94 points before ending 164.70 points higher at 24,962.48.

Meanwhile, the S&P 500 ended Thursday’s session 0.1 percent higher at 2,703.96 after a rollover inside final hour of trading. The broad index gained as much as 1.1 percent during the day.

However, Bliss believes the market was massively oversold when which hit the lows on Feb. 9 in addition to he thinks which may have more room to run higher.

which said, the volatility has been a reminder to people which the market doesn’t go straight up forever “in addition to you need to go ahead in addition to take some chips off the table at the appropriate time,” he added.

Stephanie Link, equity portfolio manager at Nuveen, a TIAA company, believes the underlying fundamentals are still very strong. What’s going on inside macro environment can be the unknown about inflation, interest rates in addition to the Fed, she said.

“which’s going to play itself out in addition to I think people are going to return to fundamentals at some point. although we just have to be patient here,” she told “Closing Bell.”

Concerns about interest rates in addition to inflation helped fuel the market sell-off earlier which month. Veteran trader Art Cashin told CNBC earlier Thursday which once the 10-year Treasury yield hits 3 percent, “all hell” could break loose inside markets.

On Thursday, the 10-year yield was slightly lower, around 2.91 percent, down by Wednesday’s four-year high of 2.95 percent.

Bliss, however, doesn’t necessarily agree which “all hell” will break lose inside stock market when which hits 3 percent.

“which will make a pause. which may kick up volatility,” he said. “although if we continue to push much beyond 3 percent then which will start to look like a breakout on rates in addition to which will be trouble for equities.”

— CNBC’s Fred Imbert in addition to Berkeley Lovelace Jr. contributed to which report.

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