These two charts suggest a pullback before Dow smashes new records, 'Godfather' Ralph Acampora says

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These two charts indicate the Dow will pull back before racing to records

The Dow Jones Industrial Average is on its best winning streak since 1995.

The blue-chip index ended the week slightly higher, completing its ninth straight positive week in a row as stocks extended a months-long rally through February.

The market's win streak put an end to an ugly Christmas sell-off. After hitting a 52-week low on Dec. 26, the Dow has roared nearly 20 percent higher, and is now less than 4 percent from its record set in October.

However, Ralph Acampora, director of technical research at Altaira Capital who's widely hailed as the 'godfather' of chart analysis, said recently that a pullback is necessary before the next leg up can take place.

"We had this very snappy rally coming off the December lows," said Acampora on CNBC's "Futures Now " on Thursday. "To be brutally honest, it was a little strong of a rally than I thought because we ran into a lot of that November supply area."

"The RSI indicator – that's the Dow relative to itself – it's at a pretty lofty level. So on the short-term basis, we technicians would say that the markets are overbought," he said. "You probably get a pullback."

The RSI, or relative strength index, has moved above 70 – a level that typically indicates overbought conditions. It plummeted to roughly 20 in December, suggesting the index was oversold.

Acampora says a drop down to the 200-day moving average at around 25,000 is possible, but that level then provides a "cushion under the market" and lends support against any further downside. A decline to 25,000 marks a 4 percent downturn from Friday's close.

There is a silver lining, though, according to Acampora. Another technical indicator, the moving average convergence divergence indicator or MACD, on the longer-term chart is flashing a bullish signal.

"In English, it means when one moving average, when the shorter one, crosses above, as you can see there on the lower right-hand side of your graph. The Japanese affectionately call it the golden cross," Acampora said. "It suggests that there is further upside momentum."

A golden cross occurs when the shorter-term moving average, such as the 50-day moving average, crosses above the longer-term moving average, such as the 200-day. It points to an accelerating upward trend.

"To summarize: short-term pause, and I think we get a good chart at the all-time high, the 26,951 on the Dow, if not even higher than that," added Acampora. "I'd say within a month or so from now."

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Veteran technician Ralph Acampora says new highs could be ahead for the market