After a grim start to 2016, the market appears to be back on the side of the bulls.
Stocks surged to year-to-date highs last week after dovish comments from Federal Reserve Chair Janet Yellen put investor fears at ease. All major U.S. indices posted their longest weekly winning streak since fall of 2015. According to one top technician stocks will continue to grind higher … for now.
"I think there's a little more room to run here on the S&P 500," Stephen Suttmeier told CNBC's "Futures Now" last week. "We're going to stay very short-term positive."
For Suttmeier, as long as the market remains overbought and the S&P 500 Index trades above its long-term 200-day moving average, stocks will be in the clear. The large-cap index broke above the 200-day last week for the first time since January.
Now, he is eyeing 2,085 as the next critical level for the S&P.
"Should we stall somewhere ahead of 2,085 and break that 200-day moving average, then I think the bears can come back into the S&P," said Bank of America Merrill Lynch's technical research analyst. "For now, we have overbought momentum and as long as that stays overbought you have to stay tactically positive."