NEW YORK (TheStreet) --The stock market staged an unimpressive rebound Wednesday from Tuesday's selloff.

The DJIA gained 54.84 points to close at 17068.71 while the S&P 500 gained 7.25 to finish at 1995.69. The Nasdaq was higher by 34.23 to close at 4586.52 and the Russell 2000 was up 6.49 to close at 1164.99.

The S&P 500 Trust Series ETF (SPY) - Get Report volume came in just over 67 million shares traded, down from the 88 million shares traded on Tuesday.

Most of Wednesday's Nasdaq gain came from Apple (AAPL) - Get Report , which posted a deep oversold algorithm number when it was down early in the morning. 

According to my internal indicators, the S&P daily trading range was Buy Trade: 1980 and Sell Trade: 2001. The actual trading range was 1982.99 to 1996.66. Thus, we do not buy the market at the closing S&P level. 

I have been of the opinion in 2014 that the economy is in a slowing growth mode when the majority, including the Federal Reserve, believe the economy is in an accelerating growth mode.

The MBA Mortgage application and refinancing number came in on Wednesday, down 7.2%. Housing demand is crashing. There is no way that we get anywhere near a 3%-4% GDP number with this type of housing demand number.

So, with the S&P at near all-time highs at 2000, decisions have to be made. You either invest up here or you book gains and raise cash. To answer that question you need to have a view on where we are in the economic cycle.

If you are in the camp that says it's different this time, you buy the early-cycle stocks such as the Russell 2000. If you think it is not you sell early-cycle stocks.

From our trading perch, we use the S&P 500 daily trading range as our guide and our internal algorithm numbers that signal oversold and overbought stocks.

On Wednesday, I added two new long positions, Ampio Pharmaceuticals (AMPE) - Get Report , a small-cap stock with an extraordinarily oversold signal, and Yamana Gold (AUY) - Get Report , a large-cap stock with an extreme oversold signal.

At the time of publication, the author was long AMPE and AUY, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.