The market bottom is in sight, says technical analyst

  • Markets are "within the ballpark of a tradeable low," says Chris Verrone, head of technical research at Strategas Research Partners.
  • Verrone says he would steer clear of industrials and instead look to invest in health-care names.
  • Apple is also a strong "leadership stock," in his view.

The market's recent sell-off is coming to an end, according to Chris Verrone, head of technical research at Strategas Research Partners.

Markets are "within the ballpark of a tradeable low," he said in an interview with CNBC's "Fast Money" on Tuesday.

The major stock indexes are all down at least 4.7 percent for October.

On Tuesday, the Dow Jones Industrial Average closed 125.98 points lower at 25,191.43, while the S&P 500 fell 0.55 percent to 2,740.69. The Nasdaq Composite, meanwhile, closed 0.4 percent lower at 7,437.54. The small-caps index Russell 2000 dropped 0.8 percent and turned negative for the year.

Verrone said he is waiting until the S&P 500 clears 2,760 before making an "all-clear call" but that he thinks market conditions are showing good signs.

Emerging markets currencies are "starting to firm," he said. "The risk off tone abroad seems to be abating."

Verrone identified which sectors to invest in and which to avoid in this period of volatility. Steer clear of industrials, where there has been "really meaningful deterioration," he said. "This will take time to repair in this sector."

Health care, on the other hand, has experienced "very little internal weakness," said Verrone. "This is the type of stock that we want to own coming out of this."

Apple is also a strong "leadership stock" for Verrone. "Apple hasn't gotten hit here yet," he said. Shares of the tech giant hit a new 52-week high earlier this month and are up 32 percent this year.

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