S&P 500 will 'unequivocally' soar higher than its recent record by the end of the year, Piper Sandler senior technical analyst says

• Craig Johnson, Piper Sandler senior technical research analyst, said the S&P 500 will continue to gain following its record high on Tuesday.
• Johnson told CNBC that charts of lumber, oil, and industrial metals show that the economy is improving.
• The analyst said one of the "key factors" for portfolio managers looking to outperform in the second half of the year will be to pivot into cyclical stocks.

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Piper Sandler's Craig Johnson told CNBC on Wednesday there's more room to grow for the S&P 500 index following its all-time intraday high on Tuesday.

The senior technical research analyst has a price objective of 3,600 for the end of the year, but he said he thinks "that's going to be a low, there's going to be more upside than that 3,600." He also answered "unequivocally yes" when CNBC asked if the market could continue higher after its Fed- and government stimulus-fueled comeback.

The S&P 500 was up 0.2% to 3,396.5 in Wednesday morning trading. It has gained 4.92% year-to-date through Tuesday's close.

Johnson said charts of lumber, oil, and industrial metals show that the economy is moving in the right direction, and that he expects another round of stimulus soon.

"There's no doubt that the economy has come off of life support, we're moving in the right direction. There is going to be a need for some additional stimulus, but at this point in time I think you're starting to see the evidence that things are starting to improve," Johnson said.

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The analyst added that markets are a "very good" leading economic indicator that look six to nine months ahead and have priced in economic improvement. Johnson also said there's $4.1 trillion of cash "sitting on the sidelines" and "with this market breaking out to new highs, there's a lot of remorse out there with investors that have been sitting on the sidelines not participating in this market for say a longer term investment horizon."

One of the "key factors" for portfolio managers looking to outperform in the second half of the year will be to pivot into cyclical stocks, said Johnson. The analyst said he believes that the Fed will remain accommodative, and this will result in financial and cyclical stocks gaining.