Chartology: Grossly Oversold and Favoring the Upside

As the S&P 500 crossed at its lowest level since 1997, can we expect the selling to be done?

Greg Troccoli, the Opalesque Director of Technical Research believes that the charts are saying just that. He's optimistic right now, and believes that major indexes including the S&P 500 are technically indicating extreme favor to the upside.

Certain names like IBM and Goldman Sachs are so oversold to a level way under their 200-day moving averages that it may make sense to start putting some money to work and taking up some positions.

Jeff Macke warns to be cautious on Goldman Sachs using Warren Buffett's recent stake as an example. He thinks it's possible the stock may go lower, and prefers to stay away.

Zachary Karabell thinks IBM will hold up better than most companies in this type of market.

Guy Adami added that IBM's international exposure, once a source of good news for the company, is something to be concerned about now.

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