Investors concerned about the volatile market may have some relief ahead, according to technical analyst Katie Stockton.

She told CNBC on Wednesday that she sees "very bullish" signs in the chart.

If the index doesn't dip below 2,640 this week, it should be an all-clear for stocks to rally, she said on "Closing Bell."

Stockton, founder of Fairlead Strategies, which specializes in technical chart analysis, pointed to indicators that show the S&P is oversold in the intermediate term.

"You also have big extremes in breadth and sentiment and leadership that we really don't often see," she added.

Stocks rose Wednesday, but well off their highs of the day, as trade war concerns appeared to ease. The Dow Jones Industrial Average ended the day 157.03 points higher at 24,527.27, but had risen as much as 458.05 points in afternoon trading. The S&P 500 climbed 0.5 percent to close at 2,651.07.

Wednesday's action followed another volatile session on Tuesday that saw the Dow close lower after swinging about 500 points.