Most stocks in a correction. What to buy

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

A large part of the Dow Jones industrial average and S&P 500 is trading at or near correction territory, sparking a debate among investors about whether the current pullback is a buying opportunity for these stocks and the overall market or the start of even bigger declines.

Even though the market has traded sideways in the past few months, 10 of the 30 Dow components are down at least 19 percent from their 52-week highs while another 11 stocks are down between 7 and 14 percent from those levels.

A similar story can be seen among the S&P 500 stocks with more than one-half of the index components down at least 10 percent.

"We have gone nowhere in the past seven months," said Art Hogan, chief market strategist at Wunderlich Securities, labeling the market's lack of vitality as a "time correction."

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