The S&P's recent gains are not set to be swept away in a "wave of risk aversion" as many market watchers think, and the index could push higher toward 1,250 points, Mark Sturdy, director at SevenDaysAhead.com, told CNBC Thursday.
"This is a sort of antidote to a strain of analytical thinking that the market is set for a wave of risk aversion and that we are vulnerable here," Sturdy said.
The S&P 500 is undergoing a large "head and shoulders reversal (pattern) that still has some way to go. The target for the reversal is 1,250 (points)," he said.
The index's reversal happened at its 2002 lows of 767 points and the bottom was formed at that low, Sturdy said.
The S&P closed 1,166.21 on Wednesday.
- Watch the video above to see how Mark Sturdy thinks volatility will be trading.
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