‘New Highs Further Out’: Strategist

Technical levels suggest the S&P 500 could break through the 1,700 level, Bank of America Chief Equity Technical Strategist Steve Suttmeier said Thursday.

"We think there's good support on the U.S. equity market, or the S&P 500, around 1,600," he said.

On CNBC's "Fast Money," Suttmeier said that recent declines in the Dow Jones Industrial Average and in the S&P 500 weren't cause for concern.

"We just think this is a normal pullback within the existing bull market, and with the advance decline lines and breadth confirming the highs, it means there's new highs further out," he added.

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"So, we think that the market can find support somewhere around 1,600, then break through 1,685, maybe even melt up into the 1,700 range."

Suttmeier added that an increase in the U.S. Treasury 10-year yield actually was positive for financial stocks.

"It was finally able to break out a three-year range," he added. "So, that should be bullish."

Industrials, Suttmeier also said, were well-positioned.

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"It's a sector we think could go to new all-time highs," he added.