The S&P 500 index has soared 12 percent from its Oct. 15 low, and that's a little bit too far, too fast, says Tobias Levkovich, chief equity strategist at Citigroup.
"The market is probably a little ahead of itself, people are too excited about the fourth quarter rally," he told CNBC. "I get nervous when everybody tries to go to the same side of the trade."
But he still thinks the market can rise further in 2015. He sees the S&P 500 hitting 2,200 by the end of next year. That would represent a gain of nearly 8 percent from Friday's close at 2039.82.
Market valuations are a "tad" above historical averages but fair, Levkovich said. The S&P 500's trailing price-earnings ratio stood at 18.99 Friday, up from 18.71 a year earlier, according to Birinyi Associates.
He expects earnings to rise 7 to 8 percent next year. Levkovich doesn't think the end of quantitative easing or the beginning of interest rate hikes by the Federal Reserve will hurt stocks, as Fed tightening is a reflection of strength in corporate activity.
Others, too, say the stock market isn't ready for further gains just yet, after major indices repeatedly climbed to record highs last week.
"After a move higher so far, so fast, the market needs a pause," Quincy Krosby, a market strategist at Prudential Financial, told The Associated Press. "We need another catalyst to move higher."
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