Technical analyst who called the stock rally sees a March pullback

2,400 level on S&P 500 is within reach: Katie Stockton

A small correction may be coming for the markets, but it will push them higher in the near term rather than start a downtrend, strategist Katie Stockton told CNBC on Friday.

Stockton, who in July predicted that the would reach 2,400 after a market breakout, said positive momentum continues to drive stocks toward that goal.

The S&P 500 was a stone's throw away from 2,400 before market open on Friday, at 2,338, but the index was down slightly.

"That 2,400 level ... is within reach for the S&P 500. I think once we hit that, a correction or a pullback is more likely, in maybe the 5 percent range," Stockton, BTIG's chief technical strategist, said on "Squawk Box."

"And, of course, with a pullback, we would welcome that as a way to kind of refresh the uptrend, which now does appear a bit overextended in the very near term," she continued.

Stockton said that based on long- and short-term momentum indicators, she sees the market pushing higher for now, then pulling back sometime in March.

"That, to me, would be an entry [point]," the strategist said.

And the pullback shouldn't necessarily be a point of hesitation or concern for investors, Stockton contended.

"We want to stay on the right side of these moving averages, the right side of the momentum indicators, and really have a top-down view of the market where any individual company or the stock of that company might not act in line with the fundamentals at certain times," she said.

That will give investors a leg up in anticipating erroneous market moves in the future, she said.

Earlier this week, Stockton told CNBC that the weeks ahead will see more record highs before any correction takes place.