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Second half rally is coming - here's why: Technician

It's been a year since stocks last made and all-time high, the first time that's happened since 2012.

Despite the lack of progress, however, one noted technician is getting bullish on stocks.

"We think we could possibly seeing some returning strength in the second half of the year," said Ari Wald Oppenheimer's top technician told CNBC's "Fast Money" this week.

"It's been a frustrating year. It's been a year since we've peaked," said Wald. "It's been frustrating for bulls, it's been frustrating for bears, it's been frustrating for everyone," he added.

By Wald's chart work, the S&P 500 Index could see some near-term weakness, but ultimately push itself higher. Since 2013, the index has formed a topping pattern that has limited gains, according to the technician. But he says that pattern has run its course and better times could soon be ahead.

"We think the S&P 500 could start to carve out a bottom," said Wald.

Wald is also encouraged by the number of stocks that have been participating in the rally—referred to as breadth among technicians. According to Wald, changes in market breadth has signaled inflection points for the broader market.

"These crossovers have been terrific tactical trading signals over the last year," said Wald.

Wald also noted improving credit conditions. Recently, prices for corporate debt have reversed higher. Typically, that has been a positive sign for the market.

"I don't think you have the same risk of high volatile selling," said Wald.