The S&P 500 is less than 1 percent from its all-time high, and according to one top technician, more records are just around the corner.
"We've already seen new, all-time highs registered by major indices in the U.S. and globally," said BTIG's chief technical analyst, Katie Stockton. "The S&P 500 has yet to do that, but I think it's a matter of time."
Stockton pointed out that despite a negative outlook for earnings, the initial reaction has been quite positive. "We're seeing breakouts [on earnings] on an individual stock level," she said. "The has hit a new all-time high, and I think the S&P 500 is going to break out from what has become a bit of a triangle formation on the chart. "
Technicians often look to wedge or triangle formations to find inflection points. The theory goes that as a stock begins to trade in a narrower range, eventually a breakout will occur, and it's usually higher. According to Stockton, the triangle pattern occurring in the S&P 500 is signaling that stocks will rally.
"There's really nice upside here," said Stockton.
Another major indicator that Stockton noted is market breadth, or the number of stocks that are participating in the rally.
"The cumulative measure of advancers to decliners has reached a new all-time high ahead of the S&P 500." In other words, the rally is not limited to just a handful of large stocks, but rather a number of individual equities.
"The uptrend still very much has positive momentum," she said. "With the support of that breadth, or market participation, I think the rally still has legs."
So how high does she see it going?
Stockton said that the S&P 500 is well on its way to 2,250 in the short-term—nearly 7 percent higher than current levels.