Louise Yamada: Get ready for S&P milestone-2,000

Why the next market milestone could come this week

View photo

Getty Images

Are you ready for another market milestone?

Judging by the market's short-term trading pattern alone, famous technical analyst Louise Yamada says that the S&P 500 (^GSPC) is on its way up to 2,000. Meanwhile, she sees the Dow Jones Industrial Average (Dow Jones Global Indexes: .DJI) heading to 17,200.

"With the breakouts that are in place for these indices, I think you could move a little higher," Yamada said on Tuesday's " Futures Now ." "You may not see something more contractual until into the fall."

Read More Futures slide after Dow, S&P 500 hit record highs

In the three-month chart of the S&P, Yamada observes a "continuation" pattern that indicated the S&P's upward momentum will continue.

"The measured move for the S&P just for this little continuation pattern suggests around 1,985, so possibly roughly 2,000. And the Dow could perhaps move up to around 17,200 just on the short-term."

Read More This number could tell us where America is heading

The one concern on Yamada's horizon is the underperformance of the Nasdaq Composite (^NDX) and the Russell 2000.

"There's a little bit of a glitch in the sense that you have a dichotomy in the market. The Russell 2000 and the Nasdaq look a little bit more precarious," Yamada said. "When you start to see part of the markets separate from the leaders, that generally means that under the surface you're seeing some deterioration. But that's not to say that you can't get some improvement here."

-By CNBC's Alex Rosenberg

Watch " Futures Now " Tuesdays & Thursdays 1 p.m. ET exclusively on FuturesNow.CNBC.com !

View Comments (21)