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Forget the gloom, here's why you need to be buying: Technician

The Dow Jones Industrial Average briefly turned negatively this week, as global growth worries weighed on stocks. Rather than run from the selling, however, one highly regarded technician is using it as an opportunity to buy stocks.

According to Oppenheimer technician Ari Wald, the latest sell-off is nothing more than healthy profit taking, and market participants shouldn't be alarmed.

"There has been a little bit of technical damage," said Wald on CNBC's Fast Money who noted that the S&P 500 is just 2 percent from its all time high. Overall, Wald says that the S&P's recent pullback is not particularly alarming because it hasn't violated key technical levels that would normally point to a deeper correction.

"The trend is fine," said Wald.

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Look for new highs on the S&P?

Wald's chart work flies in the face of gloom from market watchers like Marc Faber, a relentless bear who told CNBC last week that stocks are poised for a new bear market that could see benchmarks slide by at least 40 percent.

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Oppenheimer's Wald, however, is encouraged by recent price action, especially given the number of stocks participating in the rally. Wald said the difference between New York Stock Exchange-traded stocks that are rising verses falling is the strongest its been all year, indicating to him that the rally is broad based and sustainable.

By his chart work, that indicates stocks have a lot of room to run.

"We think ultimately the S&P 500 reaches new highs," he added.

According to Wald, investors are repositioning by selling the leaders and buying the laggards due to choppiness in the markets.

The analyst also said investors should focus on stock selection even in the sectors he prefers: technology, diversified financials and healthcare. Wald did warn that the recent weakness in the IBB, the biotech ETF, is a tell sign that investors should be very selective in their stocks.

"I think you rotate into less extended biotech names. I think those are some of the bigger cap names. Amgen we like on this pullback," he said.