Equities continue to surge as investors jump on the bull market bandwagon, backed by a high-flying S&P 500 and Dow Jones Industrial Average.

A few weeks ago, doom and gloom was the sentiment of most active traders with talk of equities plunging. Investors plowed cash into hedge funds and managed futures in an effort to diversify portfolios and protect against the downside.

Fast forward to the third week of October and sure, enough, bears are an afterthought. Bullish trends are what nearly every short and mid-term investor is betting on, including Wesley Harr, trader at stockMonster.

“The SPX broke the critical 1220 area and then ran up to the small area of interest above at 1224,” Harr told Markets Media. “Above that, the objective is 1229-31. This looks very likely to be tested come Monday. If we can tackle that metric, than there’s small area of interest at 1234.5 but nothing other than that … it’s a real air gap all the way up to 1260.”

Tech stocks rallied hard in trading on Friday, thanks to everyone’s rampant interest in both Apple and Google.

“Google has the numbers people are looking for,” said Harr. “The low price and high yield behind names like MSFT STX INTC makes for a good market.”

But traders should remain cautious. While it looks like the run up in equities will continue into next week, there is potential for downside.

“On the flip side, failure to break that 1231 and close above it two sessions in a row, we are likely to set new 52 week lows on the averages. If we fail, expect the drop to be violent and VIX could very well break the 50 mark,” cautioned Harr.