US Markets

Change in stock leadership is positive sign: Analyst

Consumer discretionary looks 'amazing': Pro

The fact that the energy and materials sectors had been leading the recent stock market rally was cause for concern, but a shift last week as earnings pour in suggests the turnaround could last, founder Todd Gordon said Monday.

The new leaders are consumer discretionary and technology.

"The leadership that you would expect to see — which is discretionary, technology and financials — were the top-performing sectors of the year," Gordon told CNBC's "Squawk Box." "I'm a price action guy. I like to let the markets indicate to me how the scenario is, and right now it looks positive."

At the end of last week, the S&P 500 consumer discretionary sector was up 12.1 percent year to date, while information technology stocks were up 6.1 percent during the period.

Read More The year's hottest sector shows no signs of slowing

Financials are still down 2.8 percent this year, putting those stocks in the middle of the pack. The sector rose 6.1 percent through October.

The earnings season thus far has been "well received" following a period of market consolidation, and stocks are now set to make another leg higher, Gordon said.

Opportunities in market downdrafts: Pro

Current trepidation in the markets centers around the idea that U.S. stocks are valued toward "the high end of normal," said Michael Gapen, chief U.S. economist at Barclays.

From this point, investors need to see economic growth before they'll see earnings growth, but the picture is not outright negative, Gapen said on "Squawk Box."

While U.S. equities may be fully valued, investors should still be buying the dips, Gapen advised.