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Why the charts still look good for stocks

Despite Friday's selloff, one noted market technician sees opportunity to buy stocks.

"It's the type of day [where] you want to buy stocks," said Ari Wald, head of technical analysis at Oppenheimer & Co.

Wald is particularly encouraged by the increasing amount of stocks now trading above their 200-day moving average. According to his data, more than half of the stocks in the New York Stock Exchange are now trading above that technically significant level.

"If you dig under the surface a little bit more and look at participation at the stock level—what the breadth of the market is doing—it's improving," said Wald.

Yet there are some sectors he sees as having headwinds, particularly mining, materials, utilities and energy. Nonetheless, Wald sees these laggards as improving.

"Slowly but surely, we think participation is going to be improved—perhaps a stock-picker's market" Wald predicted. "There's going to be some opportunities on this pullback and the averages will make new highs."