The bulls should be prepared to get kicked in the teeth again.

Despite the S&P 500 roaring back from the Feb. 6 correction lows, there is very good reason for investors to remain cautious says Bank of America Merrill Lynch. The investment bank's bull/bear indicator, which aims to measure market sentiment, remains in "excess optimism" territory. "Thus, the pain trade for stocks and credit are still to the downside," BofA strategists believe. 

BofA adds that there are a host of big events coming that could rattle markets. They include:

  • New Federal Reserve chief Jerome Powell's first testimony to Congress on Feb. 27.
  • March 1 ISM manufacturing report that if hot, could fan concerns on inflation. 
  • March 4 Italian elections/Merkel coalition vote.
  • March 8 meeting of the European Central Bank. 
  • March 9 jobs report. If wages are hot, it may spur renewed fears of quicker interest rate hikes from the Fed. 
  • March 21 FOMC meeting when rates are expected to be lifted. 

One thing is for sure: both the bulls and bears should buckle up for a wild March.

On Jolt, TheStreet's Executive Editor Brian Sozzi and reporter Kinsey Grant take a look at some stocks hedge funds like.