A nice little rally is in store for the S&P 500, predicts Evercore ISI technical analyst Rich Ross.

With the S&P 500 climbing for the third straight day on Thursday, Ross believes the recent move up in the SPY, the S&P-tracking ETF, points to more upside ahead.

For Ross, the 50-day moving average serves as a key indicator for the SPY. The moving average, which is the average of the 50 most recent closing prices on any given day, was broken through to the upside in November following the election. Following that, the SPY has stayed above the indicator — before falling below on Monday.

Still, the market managed to close above the 50-day, and has not fallen back below it since.

"That tells me that this 3 percent pullback in the S&P is likely all you get this time around, and that has set the stage for a resumption of the entire reflationary narrative," he said Thursday on CNBC's "Trading Nation."

From this point, Ross sees SPY moving up to $247 or even $249 in the next few months. This implies a roughly 5 percent move up based on Thursday's levels.

As the level Ross is looking at translates to a roughly 2,470 level for the S&P 500 itself, that means the analyst sees fresh record highs around the corner.