Market is 'very, very fractured': Ralph Acampora

Stocks have been on a winning streak this quarter, with the S&P 500 and Dow Jones industrial average up more than 8 and 9 percent, respectively. And master technician Ralph Acampora says that next week's action could determine whether stocks will continue their run into the end of the year.

"I think the momentum is still there," the well-known technical analyst said Monday on CNBC's "Trading Nation." "We break the November highs, hopefully in the next week or so, and I think you'll participate in the year-end rally."

However, Acampora, of Altaira Capital Partners, said he needs to see broader market participation, especially from the Dow Jones industrial average and the Dow Jones transportation average.

"From my vantage point, I have to see new highs ... for me to be confirmed that we're maybe out of the woods a little bit," he said. "The market has been very, very fractured, and certain sectors and groups have done better than most. We need to see a broad-based rally and honestly I don't have evidence of that just yet."

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Dow transports have tumbled 10 percent this year, a wide divergence from the S&P 500 and Nasdaq composite, which are up 1.3 percent and 7.7 percent respectively. The Dow Jones industrial average is down slightly for the year.

With a Federal Reserve meeting on the horizon, Acampora said he doesn't see the central bank derailing stocks before year-end, as the market has already priced in a December rate hike. Meanwhile, the U.S. dollar, which hit an eight-month high Monday, is primed to go even higher, he said.

"The dollar is practically back to its January 2003 levels," he said. "From a long-term point of view if you look at a 20-year picture of the dollar, I think we're going higher. And I think that has negative implications for commodities, especially gold."

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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