Stocks may have overshot their fair value, but that doesn't mean a decline is imminent, says Peter Boockvar, chief market analyst at Lindsey Group.

Around mid-day Wednesday, both the S&P 500 and Dow Jones Industrial Average stood less than 1 percent below the record highs they set Tuesday.

"Momentum can beget momentum, and it [the stock market] can stay overbought," Boockvar tells CNBC.

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

Momentum growth stocks have particularly surged in recent days. For example, wearable sports camera maker GoPro has soared 83 percent since its initial public offering last Thursday.

"It's indicative of the euphoric momentum we're in for the market," he explains. "I keep hearing about this unloved rally. Unloved by whom? Everybody who is long loves it."

Boockvar is surprised that the Federal Reserve's tapering of its quantitative easing (QE) hasn't affected stocks. "It still amazes me that we're three meetings away from the end of QE, and nobody cares," he notes.

The Fed has trimmed its bond purchases by $10 billion a month at each of its policymaking meetings since December, leaving the purchases at $35 billion a month.

Many investors remain bullish on stocks. With interest rates so low, equities remain attractive, Joseph Tanious, a global market strategist at JPMorgan Funds, tells The Associated Press.

"In the long run, market prices are dictated by the fundamentals," he said. "And the underlying fundamentals suggest that markets can move higher from here."

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

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