The market is not short on prognosticators calling for a correction but according to one top technician's work, a selloff is not likely in the coming weeks.
"It's very rare and unusual for the markets to peak out for the year in May or June," technical analyst Jonathan Krinsky said Tuesday on CNBC's "Futures Now."
The S&P 500 is currently less than half of a percent from its all-time high of 2,134.72 set May 20, and according to Krinsky's work in the last 86 years the index has made its calendar-year high only once in the month of June and twice in the month of May. "This suggests that even if there is weakness into the summer, a higher high should be made by year-end," said Krinsky, chief market technician at MKM Partners. (Tweet This)
Despite fears of higher rates and rising valuations, Krinsky maintains the internals of the market are still quite healthy. "It's important to look at what's actually happening in the market as opposed to what the Fed may or may not do," he said. "We're seeing some very good reading under the surface. We're seeing new all-time highs from the , the micro caps and the mid caps. And more importantly, we're seeing the highest reading of stocks at one-month highs that we've seen since March."
After a long period of consolidation, Krinsky sees a breakout on the horizon.
"As far as the level we're looking at, we know that the S&P 500 has been in a very narrow range this year, one of the narrowest in history, but we do ultimately see it taking out resistance at 2,130," he added. "I'm not looking for any type of runaway to the upside, but I think it could rise another 3 percent here." A 3 percent rally would put the S&P 500 above 2,180 into the back half of the year.
If the market were to pullback slightly into late summer, said Krinsky, "we think that would set up that buying opportunity that we see so often before it makes a push to the upside and actually makes its calendar-year high."