Stocks May Have Seen Lows for the Year

By Patti Domm, CNBC Executive News Editor

NEW YORK (CNBC) -- Despite the wide swings, stocks may now have seen their lows for the year, some strategists say.

However, if the market has set the year's lows, that still doesn't mean smooth sailing for investors. It also does not mean the market will break above its current range, which tops out at about S&P 1250, until more of the uncertainty surrounding Europe and the economy are resolved.

"We do think we've seen the low for the year but can't be as confident it's the low for the next 12 months," Brown Brothers Harriman strategist Andrew Burkly said in a quick note. "The can looks to be kicked at least past year end and earnings should be good."

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Harris Private Bank chief investment officer Jack Ablin said he too thinks the market hit bottom last Tuesday, when the S&P 500 plunged to 1074 on an intraday basis. Ablin pared back on his stock holdings in early August and has been looking for a reentry point.

The S&P 500 finished Monday at 1194, a 3.4% gain over Friday's close.

"We picked 1050 as our entry point. We never got to that point, but we also said if we got some favorable momentum or the dust settled in Europe, we could use it as an entry point ... I don't know if today's action signifies a solving of Europe, but it's certainly a step in the right direction. So, I think earnings could also propel the market higher," said Ablin. Ablin said he meets with his investment committee Tuesday morning to consider whether to change his position on stocks.

Better news from Europe has been helping drive the market higher, and the weekend's commitment from the leaders of France and Germany to recapitalize banks if needed helped drive the euro, and stocks and commodities higher. Stocks soared despite the lack of details on what a European plan might look like. German Chancellor Angela Merkel and French President Nicolas Sarkozy said they would agree on a plan for the banks and accelerating economic coordination in time for the G-20 meeting in Cannes in early November.