The S&P 500 pierced through its 2007 closing high level of 1,565.15 last Thursday, recovering all its losses from the financial crisis. The next milestone for the index is its all-time intraday high of 1,576.09, set on October 11, 2007. Meanwhile, the Dow surged more than 11 percent in the first three months of the year, posting its strongest quarter since 1998.
Strategists say a strong first-quarter performance usually implies a bullish year.
"Since 1945, whenever the S&P 500 recorded a positive performance in the first quarter, the average performance for the three remaining quarters improved by an average 1.2, 1.1, and 0.4 percentage points, respectively," wrote Sam Stovall, chief equity strategist at S&P Capital IQ, "In addition, the entire rest of the year saw its average return of 6.1 percent rise to 8.9 percent, or be improved upon by 2.8 percentage points."
But following the strong quarter, some strategists say investors should brace for a correction in the short term.
(Read More: Second Quarter Begins, Markets Are Slightly Defensive)
"Traders and investors should continue to keep an ear open for any new developments related to the events in Cyprus, even though the panic and contagion was largely contained when the banks reopened last week," according to Randy Frederick, managing director of active trading and derivatives at Charles Schwab, "From a technical standpoint, the S&P 500 is likely to consolidate around the old record high of 1,565 in the near-term, and any weakness would likely find support near 1,546."
Trading was on the lighter side as most European and some Asian markets, including Hong Kong and Australia, remained closed for Easter.
