The S&P just posted its best winning streak in years, but battered retail stocks could take it down next week

To talk about the stock market today is to exhaust the English language of superlatives.

The S&P 500 Index just posted its longest weekly winning streak in four years, putting together eight straight weeks of gains. But a key test could come when one group of stocks reports earnings next week.

"I think you have to watch the retail sector from Black Friday on to the end of the year," Phil Streible, senior market strategist at RJO Futures, told CNBC's "Trading Nation" on Friday.

"That could be what starts to show some of the cracks there in the foundation, and I think markets start to pull back," he added.

Retail stocks are currently down 9 percent year to date, under massive industry pressure that's made company earnings misses resemble the dark days of the Great Recession.

Streible says that depending on the numbers from Black Friday, investors may want to start looking at far-dated put options to protect themselves, as the market could soon pull back.

"This looks like a party that never ends, but once it is, they'll be left in tears," he said.

But Kevin Caron, portfolio manager at Washington Crossing Advisors, doesn't see the market rally ending anytime soon.

"You've got data that's reinforcing a good attitude by most investors feeding back into the economy," he said on "Trading Nation." He pointed to improving prices for bonds and overall positive market conditions that are creating what he calls "a virtuous cycle" for the economy and stock market.

"Right now this is a market that's running on momentum and improving expectations," Caron said.

With Friday's record close, the S&P is currently up more than 15 percent year to date.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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