While some on Wall Street think stocks are still cruising for a bruising, the charts suggest the selling pressure could subside in the short-term. 

The market hasn't had its needed purge yet says Byron Wien, who is Vice Chairman in the Private Wealth Solutions of Blackstone Group (BX) . "We will retest the February lows [in the markets]," Wien, 86, said on a recent call with media. Wien continues to believe the S&P 500 will rally back after testing the lows, charting a path to 3,000 by year end.

Others think the muted market reaction to solid earnings from financial services giants such as JPMorgan & Chase (JPM) , BlackRock (BLK) and Bank of America (BAC) hint at a market just itching to sell off again. JPMorgan is a holding in Jim Cramer's Action Alerts PLUS.

"I think those trading the markets from the long side have to be concerned about how the bank stocks are trading," opines long-time market strategist David Rosenberg of Gluskin Sheff. "Despite solid earnings, investors were less than enthused that so much of the growth came from stock market trading revenues."

Added Rosenberg,"The banks are one sector that should be rallying on tax cuts and on higher short-term interest rates. But they are not. And anything that doesn't act bullishly on bullish news isn't bullish."

The charts would say otherwise.

From a technical perspective (below), the argument could be made markets have hit a short-term bottom. The number of new highs has bounced, the number of new lows has fallen and the advance/decline ratio has stabilized. 

Source: Jefferies
Source: Jefferies

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