Despite the market trading sideways this year, many stocks in the S&P 500 have fallen significantly from their historical trading range and may be due for a pop as buyers search for value, according to chart analysts.
These analysts often look for extreme levels in the market as a way to find buying or selling opportunities. The idea is that—statistically—asset classes tend to revert to their averages.
Consider the energy sector, which was among the worst performing groups this year. Since the price of crude reached a six-year low last month, however, the commodity posted a 35 percent rally and energy stocks have become the best performers this year.