Stocks' record run hit a wall over the Independence Day holiday stretch.
The S&P 500 and Dow retreated for a second trading day in a row Monday after a massive advance in June.
The markets could still have more room to run before their next level of resistance, said Mark Newton, technical analyst at Newton Advisors.
"We have stretched the upper end of it. But I think we can make more progress over the next four to six weeks," Newton said Friday on CNBC's "Trading Nation." "I'm still bullish on the S&P." I think we probably get up to 3,040 to 3,070 or so before we stall out. "
Any move over 2.996 would mark an all-time high.
Lagging sectors joining the latest move higher thus giving Newton hope that the rally can continue through the summer. "You look at financials starting to participate. That's a big plus for stocks that are almost 1
Mark Tepper, president of Strategic Wealth Partners, said easing monetary policy should support the stock market this year, even if the Federal Reserve does not come out quite as expected.
"The market was basically expecting a 50 basis point cut this month, it's probably going to be more like 25 basis points so I believe the Fed is going to cut so the cut is not off the table. little bit narrower, "Tepper said during the same segment.
A strong June job report released Friday tempered expectations for multiple rate cuts this year. The current chances of a 25 basis point rate cut at the July meeting are 93%, according to CME Group fed funds futures.
"The market is going to trade sideways and range-bound through the rest of the year so what should you do as an investor? I think it makes sense to have dry powder if you have it. long-term story, you believe in their long-term thesis and you identify any pullbacks and when those stocks pull you buy them entry points that you think are attractive, "Carpet said.