Some indicators showing sell signals as Dow creeps towards 20,000, strategist says

One strategist said the market is starting to flash some sell signals, even as the Dow Jones industrial average inches toward the 20,000 level.

While there are widespread breakouts, investors should proceed with some caution in the short term, Katie Stockton, chief technical strategist at BTIG, said Tuesday on CNBC's "Closing Bell."

"It's the first time that we're seeing some signs of exhaustion," she said, explaining that the indicators her firm is watching flashed a buy signal for the Dow in early November.

Stockton said that one indicator is now showing a sell signal, which suggests that the market may be overbought or that there may be a loss of short-term momentum. She said, however, that there may still be momentum in the medium- and long-term perspective.

"An important point about the signals that we've seen just over the past week is that they've really been concentrated in the financial sector," Stockton said.

The S&P financials have rallied 8 percent in the past month.