John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, tells CNBC's "Power Lunch" stocks can move higher from these levels.
"From our perspective on the market radar screen, the quality and ability of the current bull market to outwit the bears remains in place," Stoltzfus said.
"We moved to an underweight on energy from a market weight at the beginning of the year. Our concerns were and are the fundamentals wherein supply is generally plentiful," Stoltzfus said.
With utilities and telecom, Stoltzfus believes they are over-owned and are vulnerable when the market turns on pricy bond proxy defensive stocks.
Energy and telecom are higher during trading, while the utilities sector is lower.