5 Technical Setups for a Market Selloff

BALTIMORE (Stockpickr) -- Stocks have been selling off for the last week, dropping close to 4% since July 8. While today's early market action stands to give traders a reprieve from that selling, it's likely to be a short one. While stocks continue to sell off, let's take a look at the other side of the market, choosing instead to look at promising technical setups.

It's important to note that while the decline in the market has been constant for the last week, it's more thanks to a lack of buyers than an abundance of bears. That's a crucial distinction because it indicates that the potential for a snapback rally (like the one that kicked off July) exists -- particularly as strong earnings continue to trickle in.

From a technical analysis standpoint, there's reason to be bullish on specific sectors and stocks right now.

Related: 5 Rocket Stocks to Buy for Earnings Season

Remember, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

Here's a look at this week's setups.