The Trump rally isn’t over — why the market could explode much higher

Stocks have soared after the election of Donald Trump , but the real rally may just be getting started, according to macro strategist and trader Boris Schlossberg.

"If the [incoming] administration really seriously focuses on his economic agenda first and foremost, and it looks like it will, then you have this incredible potential of deregulation, possible tax cuts and fiscal policy," Schlossberg, of BK Asset Management, said Wednesday on CNBC's " Trading Nation ."

And since the economy has already been improving, "to jump-start the economy into a higher gear from this level provides, I think, a tremendous amount of fuel for much higher-than-expected earnings and much better-than-expected performance in 2017," he said.

Even though valuations have already risen, optimism about Trump's economic agenda means that over the first 100 days of his presidency, "the market could explode much higher on sentiment alone," Schlossberg wrote to CNBC.

On the other hand, Oppenheimer technical analyst Ari Wald points out that bullish sentiment has already surged, which "suggests equities could pause here, or that more attractive opportunities to buy may develop."

Yet more broadly, "the longer-term picture is still bullish," Wald said Wednesday on CNBC's " Power Lunch ." "Our current indicators are supportive of an extension of this advance that could take the [S&P 500 (INDEX: .SPX)] to 2,500 this year."

That would represent a 10 percent rise for the large-cap index.

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