The rally still has some room to go, Dodge Dorland, chief investment officer at Landor Capital Management, said Monday.
The short-term pullback is a buying opportunity and if the Dow can hold above 10,000, the Santa Claus rally is on, he said.
"We may pull back. But the pullback at this point will be considered a buying opportunity, unless we break some fairly significant levels," Dorland told CNBC. "For now the trade is to the upside, so we're buying pullbacks until we're proven wrong."
If the S&P 500 index keeps support at 1,070, there will be a move to the upside to 1,170, Dorland predicted.
The Dow Jones Industrial Average's next level of support is 10,200, according to Dorland. If it holds, and the Dubai situation will give us reason to test that level, then the index will trade higher, he added.
"If the market can get moving to the upside, for example, if the Dow can get above 10,000/10,440, then the market is ready to move to the upside. We will have the Santa Claus rally," Dorland said.
Another test the U.S. market will have to endure it the November U.S. nonfarm payroll figures out on Friday. Economists surveyed by Briefing.com expect a decline 114,000 jobs and the unemployment rate to rise to 10.2 percent from 10.1 percent last month.
The numbers are expected to be negative, according to Dorland, so "they have to be significantly more, 3-5 percent more, than what is being projected in order for the market to be shaken further."
"A lot of the negativities have already been built into the market. We're in a very favorable season and so, at this point, until the end of the year, the institutions are looking for buying opportunities," he said.
The dollar's recent strength will last one-to-two weeks "and that's caused by the current news that's coming out," Dorland explained. He then sees it going back to being weak.
"The next questionable rise will probably be at the end of January/beginning of February and that's when the moves in the dollar will be much more significant than what we're seeing now," he predicted.