Are The Markets Melting Up?

The market is vulnerable to near-term setbacks despite the longer-term uptrend — as the recent rally hasn't been confirmed by market internals, Todd Gordon of TradingAnalysis.com told CNBC.

"In the near-term, the markets are melting up and I don't see the market panicking to the top side for any particular reason rather than short covering. Longer-term, I do think we have the ability to rally up to 2,600," Gordon said.

Gordon also pointed out to a technical analysis showing the three phases of the boom market. The first is 2009–2011, the second was from 2012 to 2015 and now "we are in the third stage."

Related Link: The Market In 5 Minutes: Oil Hitting 7-Month Highs

Noting that the entry of lay commerce into this market at this time is "unfortunate," Gordon said, "This is a rally where you could see deteriorating fundamentals. There would be significant price gains, but after that volatility."

As such, Gordon says a near-term pullback is likely amid the correlation of crude oil/S&P 500 correlation has gone negative in May.

Another Perspective

Meanwhile, Jack Caffrey, JPMorgan Private Bank, is "positive" on the market. He pointed that financials are doing better and supporting the market, with interest rates creeping higher.

Caffrey noted that "energy is moving higher and energy market demand indicates global growth."

Crude oil breached the $50 mark for the first time in nearly seven months on Thursday. Currently, crude for June delivery rose 1.09 percent to $50.10.

"Now what we want to happen is positive. Now, you may see some trading underneath the market creating opportunities," Caffrey added.

The benchmark S&P 500 index is up 0.06 percent to 2,088.50 and Dow gained 0.13 percent to 17,841. Meanwhile, tech-heavy Nasdaq edged up 0.12 percent to 4,480.25.