"S&P 2,000—I like it. Here's why I like it. There's been very good leadership on the way to new highs as an indication of risk appetite in the market. I like that the high-betas-to-low-volatility ratio also reached a new high," said Ari Wald, technical analyst at Oppenheimer Asset Management. "It's been good leadership, still a very healthy uptrend, and it's one we think can continue." Wald said select areas of the financial sector are participating more, and he also likes big cap technology stocks.
"Biotech is breaking out to the upside again, and now if you're looking for something that hasn't run up that much, I think energy could play a little bit of catch-up, specifically some of the equipment and services names," he said.
Analysts say that determining the market's course this year is difficult, as it had not been expected to return much after a more than 30 percent rally last year. The S&P 500 has outperformed so far and is above many strategists' year-end targets with an 8.3 percent year-to-date gain.
But Wald says odds are that the S&P will also perform well in September. Since 1950, September has been the second most volatile month and the worst performing, with an average loss of 0.47 percent.
Read MoreWhy S&P 2,000 milestone has Art Cashin unimpressed
"There is sometimes fear about September seasonality...the average performance of the S&P 500 when it's above its 200-day is 0.4 percent gain. If it's below its 200-day, it's a 2.7 percent loss.... Since we're in an established uptrend, we think those worries are overstated this year."
Wald said the S&P could reach 2,080 in the near term based on its recent moves.
LaRosa agrees with the 2,080 target, and he said he would feel more confident that the S&P would hold 2,000 if other indices return to their highs. The Dow needs to reach 17,151 and was trading a little over 30 points below that level Tuesday.
Read MoreSiegel: Why this bull has room to run
"I'm not going to get too excited until the Russell (2000) returns to its highs, and it's far away from that," he said adding the Russell has risen above the key 1,164 level and that could help it make a run for 1,213.
"If that happens I would expect the market to explode and all these stocks that are floundering should form bases and go higher. If that doesn't happen, you're back to square one. You're back to a very difficult slow moving market," he said.
Stocks have taken their cue this weak from European equities, lifted by the prospect of new easing by the European Central Bank. The ECB could set the tone for next week, as it holds a meeting on Sept. 4, and speculation has been swirling it will take some action.
—By CNBC's Patti Domm