A week after hitting all-time highs, the benchmark S&P 500 index sunk lowest levels since the start of the summer.
However, Ari Wald, head of technical analysis at Oppenheimer and Co., thinks this may be a good time to jump into stocks rather than join the rest of the herd selling.
"Now's not the time to be getting bearish," Waldsaid. "I see this as a great opportunity to build a position in the S&P 500."
Wald is watching the 1,900 level in the index. "That was the breakout point in late May," he said. "Any investor that missed out on that late May rally I think is going to be looking to get in at that level that they missed."
One counter-indicator Wald is using is the percentage of stocks in the S&P 500 trading above their 50-day moving average. "Only 34 percent of the S&P 500 is now trading above their 50-day moving average," he said. "This is the lowest level since February when it was at 25 percent…. The market is oversold. Technically, these are buying opportunities."
Yet Gina Sanchez, founder of Chantico Global, believes the downturn isn't over just yet. "This selloff on Thursday had a different look and feel then other selloffs that we've had this year," she said. "It felt like a liquidation. Everything went down at the same time. You had Treasurys off, gold off, oil off, stocks off – it was just an ugly day in the markets all around."
Sanchez believes Wald's support level of 1,900 is not going to be where the market finds support.
"I do believe we are going to go below that maybe down to 1,850," said Sanchez, a CNBC contributor. "That's not an unreasonable number."
Top line numbers may have been decent in the second quarter, "but if you look at what's baked into the market for Q3 and Q4, they have to be as good or better," Sanchezsaid. "I think that that's going to be a concern, so I do think the markets have to reevaluate a little more."
To see the full discussion on what's next for the market, with Wald on the technicals and Sanchez on the fundamentals, watch the above video.