Knapp said historically the market has corrected when the Fed pulls back from easing, with an average 8 percent decline. "We basically pushed that correction into next year," he said.
The CNBC Fed Survey this week found that Wall Street now expects the Fed to maintain its current level of purchases of Treasury and mortgage securities until April.
"They're on hold until they can get a cleaner read from the data that's not distorted by government shutdown and they reassess where the economy stands," CRT Capital senior Treasury strategist Ian Lyngen said. "There is tail risk that the Fed does something more hawkish that the market is not prepared for. I would ascribe a very small probability but that's the one thing that could shock the market."
The Dow on Tuesday soared 111 points to 15,680, besting its Sept. 18 closing high and catching up with other indexes that had already set new highs. The S&P 500 was up 9 at 1,771. The Dow temporarily broke above its September intra-day high of 15,709 in early trading Wednesday.
(Read more: QE expected to continue through 2014: CNBC survey)
"We have this favorable set up where public and monetary policy are both generally improving. I think the economic outlook is generally improving as well," Knapp said.
He also said the market is now in a seasonally positive time. "There were only four fourth quarters since 1990 when the returns were negative," he said. The last time the market registered a loss in a fourth quarter was when the recession was in full swing in 2008.
"I don't see much to stop it now," Knapp said. He said he expects the upcoming budget negotiations in Washington to be less contentious and he does not expect the Fed to announce that it will taper its bond buying until March.
Jack Ablin, CIO of BMO Private Bank, said Fed officials may say something more hawkish to keep the markets thinking about tapering, even if they don't do it yet.
"My guess is they're going to take a more hawkish tone. I think they're going to have to get the idea of tapering in the future back in the system. I don't think they do it. I just think they have to talk about it again," he said.
But that should not stop stocks from moving higher. The S&P 500 "is about 10 percentage points above the 200-day moving average. This is a very good story. The most likely scenario is the market tends to gain 10 to 15 percent in the subsequent 12 months," said Ablin.
The Fed likes the animal spirits it is creating, he said. "What they want to do is have their monetary policy stimulate activity but they don't want to create a bubble in the meantime," he said.