U.S. markets staged a rebound on Tuesday. Cuttone's Keith Bliss says Monday's selling was a sign of capitulation, which prompted brave traders to buy. Bliss says the buying is continuing Tuesday because some investors feel the market has sold off enough. Bliss believes stocks will continue to recover at a choppy pace. He also watches the ten-year treasury yield and the volatility index for indications of movement in the S&P 500. Bliss points out the correlations between the two indicators.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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