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Here's where investors are hiding right now

"The bigger, the better," goes the saying. But is that the right way for investors to play stocks right now?

With the recent selloff of the markets, the large-cap S&P 500 index is down around 6.1 percent from its Sept. 19 record highs. But during that same period, the mega-cap S&P 100 index – the largest 100 stocks in the market – is down slightly less than that, off by "only" 5.8 percent.

(Watch: S&P 500, Nasdaq Composite halt three-day drubbing)

That may not sound like much difference, but it may be revealing something important about how people are trading the markets – they are less likely to unload the likes of Apple or Wal-Mart than they are some of the "smaller" companies in the S&P 500.

"Bigger is better right now," said Gina Sanchez, founder of Chantico Global and CNBC contributor. "Investors are still quite nervous. There is fear in the market and that hasn't been taken out. So as we continue to flesh out what I think is going to be an important correction to the markets, I think that investors are going to hide out in bigger stocks."

Ari Wald, head of technical analysis at Oppenheimer & Co., says those who must own stocks would be safer in the mega-cap S&P 100 for now than the broader market.

"We've been telling [clients] to rotate into these very large-cap stocks over the past few weeks," Wald said. "If you look at the very long-term chart of the S&P 100 relative to the S&P 500, we are seeing signs of this very long-term trend turning in favor of mega-cap stocks."

(Watch: Four most worrying drags on global markets)

For Wald, the best equity investment in the world is U.S. mega-cap stocks. "If you look across the world, we think the U.S. should be overweighted versus European stocks," he said. "Large caps should be overweighted versus small stocks. And we think the mega-caps should be overweighted versus the rest of the S&P 500. This is the place to be if you have to own stocks."

To see the full discussion on the S&P 100, with Sanchez on the fundamentals and Wald on the technicals, watch the above video.

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