Market Levels to watch this week

Last week was a big week for the markets as both the S&P 500 and the Dow Jones Industrial Average were at all-time record levels. What will this week bring?

Talking Numbers asks CNBC contributor Abigail Doolittle, Technical Strategist at The Seaport Group to look at the technicals for the S&P 500. John Stephenson, senior vice president and portfolio manager at First Asset Investment Management, analyzes the market's fundamentals.

"We went into the quarter very pessimistic in terms of company guidance," notes Stephenson. "The negative-to-positive guidance ratio was roughly three times greater than it historically has been. Companies have been surprising to the upside [since]."

Stephenson believes the steepening yield curve – where long term rates move higher relative to short term rates – is helping to support a market rally. As well, investment alternatives such as bonds and foreign equity markets are not as attractive as the US market right now, according to Stephenson.

"I think there is no other game in town other than the S&P," says Stephenson.

What levels does Stephenson think is next for the S&P 500? And where does Doolittle think the markets are headed?

Watch the video above to hear some surprising predictions on what's next for the markets.

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