S&P on the road to 2,000: Strategist

Large amounts of money shifting from fixed-income investments into the stock market means that the bull market has a lot more upside, Piper Jaffray Senior Technical Analyst Craig Johnson said Monday.

Johnson, who raised his year-end S&P 500 target to 1,850, said, "We think this is just another mile marker on the road to 2,000. And what we're seeing today is a lot of strong-looking stocks, a lot of strong-looking groups and, again, positive inflows into funds."

(Read more: Retail investors most bearish in 7 months—despite record highs)

Johnson's top stock sectors were industrials and manufacturing, financials and consumer cyclicals, which would get the S&P 500 to 2,000 by the end of 2014. The worst sectors, he added, were energy, basic materials and utilities.

On CNBC's "Fast Money," Johnson noted an outflow of $18.4 billion from PIMCO funds and cited Lipper data showing a move of more than $2 billion into equities "just last week."

(Read more: Retail investors most bearish in 7 months)

Yields on the 10-year Treasury bond, he added, would likely head to 3.4 percent over the next 18 to 24 months.

Johnson said he looked at similar moves in 1952 and 1982 for evidence of where interest rates would head.

"When we've seen these secular shifts occur in the bond market, we've seen a corresponding shift out of fixed income and back into equities, and we think that's going to propel this bull market to even higher levels than what we're seeing today," he said.

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

— CNBC's Michael Newberg contributed research to this report. Follow him on Twitter: @MikeNewberg.

Trader disclosure: On Aug. 5, 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 GS; Joe Terranova is long MS; Joe Terranova is long VRTS; Joe Terranova is long OXY; Joe Terranova is long TRV; Joe Terranova is long EMC; Joe Terranova is long SJM; Joe Terranova is long TRIP; Joe Terranova is long SBUX; Joe Terranova is long URBN; Joe Terranova is long HOS; Joe Terranova is long AXP; Joe Terranova is long PXD; Joe Terranova is long EOG; Joe Terranova is long CXO; Joe Terranova is long LTD; Stephen Weiss is long AAMRQ; Stephen Weiss is long LCC; Stephanie Link is long AAPL; Stephanie Link is long GS; 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 VGK; Josh Brown is long QCOM; Josh Brown is long VAW.