US stocks rise as overbought market “still looks good”

US stocks rose on Thursday. The S&P 500 advanced 0.2 percent.

“The seasonal Santa Claus rally is at hand, and we think it will help prevent a pullback before year-end,” said Katie Stockton, chief technical strategist at BTIG.

The rise on Thursday left the S&P 500 just 0.4 percent below its all-time high, leaving the market overbought.

According to Ryan Detrick, senior market strategist with LPL Financial, that is bullish.

Detrick said that since 1950, in the 13 times that the S&P 500 has become this overbought, the market has risen the following year all but once, seeing an average annual move higher of 11 percent.

“Things still look pretty good, even though we are still historically overbought here,” Detrick told CNBC on Wednesday.