Most of the S&P 500 should rebound this week

Lucas Jackson | Reuters

Nearly 400 members of the S&P 500 were "oversold" on a statistical basis at the end of last week and therefore should rebound this week, if history is any guide.

Many were so beaten down during the benchmark's worst month in nearly four years that they should trade higher for not just one week, but during all of September, CNBC analysis using Kensho, a hedge fund data tool, indicates.

The scan found the stocks that fell by a statistically significant number of standard deviations from their 50-day moving average. Declines of these magnitude preceded past rebounds, according to historical data.

Here are the top 10 stocks due for the biggest pops this week based on our analysis...

After falling more than 1.5 standard deviations from its 50-day moving average, pharmaceutical company Mallinckrodt is due for a comeback. The last five times the stock fell by this magnitude, it rebounded all five times with an average percentage change of 4.9 percent over the subsequent five trading days.

Other notable names on this list include refiner Marathon Petroleum and biotech Gilead Sciences.

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Looking out a little longer term, many of these same stocks are due for a significant pop over the next 20 trading days as well.

New members on the longer-term buy list include Tripadvisor, eBay and American Airlines, whose short-term declines last week have historically preceded big gains, on average, in the month following.

To be sure, there is no fundamental analysis involved in this stock screen. It is simply a reversion to the mean evaluation and shouldn't be seen as a long-term endorsement to own a stock, but simply one of the many tools short-term traders use when deciding whether to enter or exit a position.

Still, the stock market is slowly getting the message that the selling may have been overdone in August as the S&P 500 was trading well off its morning lows through 1 p.m. ET on Monday.

Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.

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