However, some market technicians note that the market has become as oversold as it was in the the August-October period, which precipitated a huge snapback.

FORBES: Five Stocks To Be Thankful For Amid The Market Turmoil

Ginzburg says that, although further breakthroughs of psychologically important levels makes the market vulnerable to negativity, it does set the stage for a strong, snapback trading rally.

FORBES: Forbes Forecast: Brocade Is Wall Street's Latest Victim

Seagate Technology Public Limited Company (STX) has had its declining topsline over the last four months taken out a week ago, only to snapback the last couple sessions.

FORBES: Six Sizzling Charts For Six Hot Stocks

This means potential for a still-smaller net-longs when the next round of data is reported this Friday, unless there is a snapback in prices Monday and Tuesday, observers said.

FORBES: FOCUS: CFTC: Large Specs Slash Gold Net-Long Position Again; Short-Covering Potential Seen

He notes that the snapback in household wealth has come mostly from soaring stocks, and that means most gains have gone to a small number of people the wealthy.

NPR: Stocks Tied To The Consumer Are Hot. Maybe Too Hot

That was quite a snapback!

FORBES: Latest Panic On The Street Presents Rare Buying Opportunity For Long-Term Investors

Merrill's individual investors business, the Private Client Services division, won't hold back its stock price when investment banking firms like Goldman Sachs (nyse: GS - news - people ) and other institutional broker-dealers snapback amid a pickup in capital markets and merger and acquisition activity.

FORBES: Be Bullish On Merrill

One stock that I would avoid, or sell if I owned it, is Hewlett-Packard (HPQ) for the very simple reason that based on the dire circumstances it is in, it IS a Loser undisguised and not a Fallen Angel that should be owned for a sure snapback.

FORBES: For Now And The Coming New Year, There Are Specific Stocks Investors Should Definitely Avoid