Stocks snapped back from a three-day losing streak on Thursday, with the rising 1 percent and the S&P 500 closing at a record high. And while many market participants question how long stocks can maintain their momentum, one top technician says the rally is just getting started.
"There are two ways of looking at the market, you can anticipate a move or react to it," technical analyst Ralph Acampora said Thursday on CNBC's "Futures Now." "I think people need to react more because so far there hasn't been a major correction."
As of Thursday, the market hasn't seen a correction in 740 trading sessions, or since late 2011. But according to Acampora, head of technical analysis at Altaira, the broad market trend is still quite healthy. "Until you see the major moving averages broken, until you see the trends broken," there is no need to worry, he said. "We can stay in this range for a while and so far, the leading averages look just fine."
Of the lull in volatility, Acampora said it doesn't bother him that the VIX remains low. "We've had the VIX somewhere between 17 and 10 since the correction in 2011," he said. "That's not a sign of complacency, that's a sign of strength." Traders often look to the VIX to gauge the level of fear in the market, as a spike in the tends to correspond with a selloff in stocks.
As far as where the market is heading, the so-called godfather of technical analysis sees another 7 to 8 percent upside in the S&P 500 by the end of the year. "I see the market going anywhere from 2,250 to 2,300," he said.
In any event, to Acampora, the message is clear: "Don't fight the trend. This [market] looks very, very good."