S&P heading to 1,800: Strategist

The stock market is expecting better economic data over the next six months, Sam Stovall of S&P Capital IQ said Monday.

"My expectation is we probably would move up to about the 1,740 to maybe even the 1,800 level before we experience another digestion of 5 percent or more," he said. "And I think the market, while it is sort of looking over its shoulder at numbers that are coming out today, it's still looking six months down the road and has the expectation that economic data here, as well as in Europe and in Asia, will likely be ticking higher."

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On CNBC's "Fast Money," Stovall said that the Federal Reserve's tapering of its asset purchases would have a moderate effect on the market.

"I think the taper is important because whether you take your foot off the gas or put it on the brake, you still are engaging in some sort of a slowing process," he said.

"But I think when investors realize that we are taking our foot off the gas because we are growing organically, then I think investors say, 'Look, it's going to be a fundamentally driven bull market, no longer a liquidity-led bull market.'"

Stovall said that his top sector picks were financials, consumer discretionary and health care.

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By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

Trader disclosure: On July 22, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long TRV; Joe Terranova is long AXP; Joe Terranova is long OXY; Joe Terranova is long EMC; Joe Terranova is long MS; Joe Terranova is long GS; Joe Terranova is long CRUDE OIL FUTURES; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long EBAY; Stephanie Link is long GS; Mike Murphy is long BAC; Mike Murphy is long C; Mike Murphy is long FB; Mike Murphy is long LEN; Jon Najarian is long AAPL; Jon Najarian is long GLD ; Jon Najarian is long ABX; Jon Najarian is long NUGT; Jon Najarian is long BBRY; Jon Najarian is long PBR; Jon Najarian is long ITUB ; Jon Najarian is long WLL; Jon Najarian is long ZNGA.