×

S&P could hit 2,250 this summer: Technician

Traders should take advantage of any dips in the market and buy, because the S&P 500 will probably hit 2,250 by late July or August, technician Mark Newton said Thursday.

He told CNBC's "Closing Bell" there are three reasons to be optimistic that equities will move higher.

First, there have been more signs of sector rotation into positive sectors like financials and technology that account for close to one-third of the S&P 500, said Newton, owner and technical analyst of Newton Advisors.

There has also been great breadth and momentum on the rally from February lows, he added.

Lastly, he said, sentiment continues to be very pessimistic.

"People are very discouraged. They didn't get to make the money on this recent rally," he said. "I think we're going to move at least a little bit higher to new highs into the summer."


Steve Grasso, director of institutional sales at Stuart Frankel and a "Fast Money" trader, isn't biting yet. While "this thing can always actually pop higher," he's watching the old S&P high of 2,134, he told "Closing Bell."

"Until you take out that old high, I don't think you can put new money to work right now," he said.

Another factor that could impact the market is oil prices.

Trader Jonathan Corpina warned Thursday that if prices rise above $50 too quickly, they could become a headwind for the equity markets considering the volatile moves that have occurred in oil.

Earlier in the day, oil prices tested the $50-per-barrel mark as production outages brought a faster-than-expected recovery to an oversupplied market. Ultimately, however, U.S. crude futures settled down 0.16 percent, or 8 cents, at $49.48 a barrel.

"Investors feel comfortable when we keep oil at a nice four-point range and we seem to get into a range and then step out of it," the senior managing partner at Meridian Equity Partners said in an interview with "Closing Bell."

"It seems like as we step higher, the overall effects of oil prices on our equity markets, we're not going to see that lockstep move."

— Reuters contributed to this report.