Investors should look for stocks to hit more record highs in the weeks ahead, according to Katie Stockton, chief technical strategist with BTIG.
"It's very much a momentum-driven tape, … and momentum is still quite strong," Stockton said Tuesday on CNBC's "Power Lunch."
The technical analyst noted that the S&P 500 has broken out of its recent range, and "short-term momentum has turned positive."
On the downside, the market is supported by its 50-day and 200-day moving averages. That means that if the S&P falls from its current 2,337 level to 2,270 (the average of its last 50 closing prices) Stockton would expect the index to turn back higher.
Stockton does not see wild upside ahead. The "measured move" theory would suggest that the move out of the range will be as large as the range itself. Since the market's range went from around 1,860 on the downside to 2,130 on the upside, this suggests that the S&P will likely rise another 270 points over 2,130, to 2,400. That would represent a further 3.2 percent rise from Tuesday's opening level.
Once 2,400 is hit, a correction would appear likely, she said.
"That's about where I would expect the overbought conditions to catch up with the market," Stockton said.