With the first trading session of the fourth quarter getting underway Monday, BTIG's chief technical strategist, Katie Stockton, said on CNBC that she sees short-term momentum building and possible record highs ahead.
Notching its fourth straight quarterly advance in third quarter, the S&P 500 did narrowly slip in September. But investors should not read too much into last month's decline, Stockton told "Squawk Box."
September's performance was healthy enough, Stockton said, to allow a key technical indicator, the monthly moving average convergence divergence for the S&P, to flip to a buy signal for the first time since February 2015.
"New all-time highs are within reach given only minor resistance near 2,194. Initial support remains in the 2,100 to 2,135 area," she contended. The S&P, as of Friday's close, was about 1 percent away from its record high finish of 2,190.15 in August.
Within the context of an S&P uptrend, Stockton likes transportation stocks. "The transportation sector tends to outperform in a strong bull market, so we have ... downtrend lines and the relative strength ratios for transports starting to turn [positive]."
"I think that's [also] promising," she said.
On bonds, Stockton predicted a multidecade downturn for yields over the long run. But the yield on the 10-year Treasury will continue to see uptrends in the near future, she added.