NEW YORK (TheStreet) -- Stocks are flat Friday with the S&P 500 within a stone's throw of all-time highs. That got the CNBC "Fast Money Halftime" traders wondering whether stocks are set to break out or break down.
Stocks are more likely than not to break out to new highs, but if they don't it's "not the end of the world," according to Josh Brown, CEO and co-founder of Ritholtz Wealth Management. It helps that other international funds are breaking out, too, including the Vanguard FTSE Europe ETF (VGK) and the iShares MSCI EAFE ETF (EFA).
Not all sectors are participating in the rally such as small-cap and transport stocks, but that's fine, Brown added.
It's more about individual stocks rather than the entire market, said Jim Lebenthal, president of Lebenthal Asset Management. He likes retail stocks such as Kohl's (KSS), Target (TGT) and J.C. Penney (JCP) and technology companies including Qualcomm (QCOM), Cisco Systems (CSCO) and IBM (IBM).
Equities are not in a bubble, Lebenthal added. He expects interest rates to go higher in the long term, making financials attractive as well.
However, Jon Najarian, co-founder of optionmonster.com and trademonster.com and Michael Block, chief strategist at Rhino Trading Partners, believe interest rates are going lower in the intermediate term. As a result of lower rates, Najarian believes bonds will move higher.