Ari Wald expects new highs for S&P500

As the S&P 500 surges to record highs, Oppenheimer's head of technical analysis sees a pattern that suggests more gains are likely in the weeks ahead.

It all comes down to market breadth — that many stocks are participating in a market surge, said Ari Wald. He points out that the percentage of stocks that are trading above their average close over the past 200 days has hit 70 percent.

This indicator marks a "resumption of strength like it did in 1995, 2003, 2009 and 2012," Wald said.

This isn't the only historical parallel that convinces Wald the market bounce still has legs.

Wald points out that since the 1950s, every time the S&P 500 reached a new all-time high after being below its prior high for at least a year, the next 12 months are up an average of 14 percent, according to a study conducted at Oppenheimer. It's been positive 12 out of 13 times since 1950 when this situation arose.

"All-time highs are bullish," Wald said.

Wald said he sees the S&P going to 2,250 by the end of 2016, and for those looking to profit from the rally, the recent breakout at 2,135 is an "attractive entry point."