Power Play: Prepare for a mild pullback

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Stocks are in rally mode again, with the Dow, Nasdaq and S&P 500 hitting new highs this week. The major averages are up 16 percent or more since the market lows of February 11.

Gene Peroni, chief investment officer of Peroni Portfolio Advisors, tells CNBC's "Power Lunch" on Friday he does not see this as a top.

"There could be a pullback, but the market is preparing for another leg up," Peroni said. He believes we could see 19,000 or 20,000 for the Dow this year.

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Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds, likes the breadth of this rally, but doesn't think the move up will be in a straight line.

"There are challenges with round numbers, though. If we get to [S&P] 2,200, I expect we could experience a mild pullback. That's why I'd rather overweight Europe and emerging markets where they have more headroom," Jacobsen said.

The Dow, Nasdaq and S&P 500 are down during trading.