There may be some opportunities for investors to sell stocks with gains in the coming weeks as markets pose a relief rally, technical analyst Katie Stockton said Thursday. "Based on my indicators, we have a setup that's really very similar to mid-July," Stockton, the founder of Fairlead Strategist, told CNBC's " Squawk Box ." "We saw the relief rally then and over the summer extend higher for another month or so." Technical signals flashing Part of the summer rally was boosted by seasonal factors, she said. Still, she's looking for positive upside in stocks here based solely on market indicators, not any other influences. The rally will also likely be followed by another period of market turmoil, Stockton said. "We would consider a selling opportunity because, on the back of it we think that there will be that volatility event," she said. The relief rally could push stocks above their August high and may lift the S & P 500 above its 200-day moving average, around 4,100. "There is some initial resistance around 3,914," she said. "I view a couple of daily closes above that level as a nice positive catalyst near term." The S & P 500 on Thursday traded around 3,900. Tech oversold There's also favorable action in the Nasdaq 100, which has underperformed and exhibited strong downward momentum as of late. A short-term counter trend signal that Stockton watches this week suggested that a two-week oversold bounce could be on the horizon for the tech-heavy index. "Naturally that won't occur without participation from the FANG stocks or mega caps," she said, adding that the mega caps, which include names such as Meta and Amazon , are deeply oversold in both absolute and relative terms. "So, while we are deferring to that downtrend intermediate to long-term, we think that they're a little bit overdone to the downside right now," said Stockton. Stockton's comments came after a lighter-than-expected consumer price index report raised hope that U.S. inflation may be peaking, sparking a sharp move higher across stocks. Tech stocks, which make up a large portion of the Nasdaq 100, surged in early trading Thursday.