After a major breakout, the S&P 500 has experienced a "buying climax," according to Jeffrey Saut, chief investment strategist at Raymond James.
But he believes that after a brief refractory period, the bull run will resume.
A "buying climax" refers to a sharp increase in price accompanied by heavy volume that is then followed by a slip, which is just what happened last week.
"What it suggests is that the demand for stocks has waned in the short run, and it either causes the S&P to pause or to have an attempt at a pullback," the strategist said Monday on CNBC's "Trading Nation."
But even though he diagnoses "the near-term exhaustion of demand," Saut still sees the bright side of the climax.
"Buying climaxes tend to happen in bull markets," he said. "And I continue to think we're in a secular bull market — and those typically last 14 or 15 years. We're just about 7½ years into this one, so I think we've got years left to go."
He said an improving earnings picture should serve as a major tailwind for the market.
In other words, while stock may need a bit of time to rest in the short term, for Saut, the long-term picture still remains very constructive.