So much for the summer doldrums. Investors are rapidly coming to grips with the problems facing the world economy, sending markets into a tailspin that was punctuated by Thursday’s 512-point decline in the Dow Industrials. The steady selling of the past week devolved into outright panic, with the VIX soaring to its highest level in over a year and Treasury yields collapsing to within striking distance of their 2008 lows.

After several days of weakness, the charts look frightening and there appears to be little hope for the kind of news event that could help arrest the decline. Nevertheless, don’t ignore the fact the major indices — and most individual stocks — have become very oversold in rapid fashion. The odds of a trading bounce are increasing, possibly providing intrepid investors with an opportunity to make up some lost ground in the days ahead. Consider that:

1. The U.S. market had a 90% down day on Thursday, which means more than 90% of stocks declined and over 90% of the volume was on the downside. Typically, this level of selling signals the type of exhaustion that can precede a bounce.
2. The RSI on the S&P 500 plunged to its lowest level since the peak of the financial crisis in late 2008, indicating exceptionally oversold conditions. The index reached a similar level prior to a short-term bottom in 2001, and again near the final low in 2002, but otherwise it has spent very little time near its current level in the low 20s.

Also, consider the similarity of the current year-to-date chart of the S&P 500 with that of the April 2007-February 2008 interval. During that time, the S&P reached a short-term bottom about 7% below its previous low, then rallied over 100 points. On Thursday, the index closed about 5% below its prior low. This is an inexact science to be sure, and of course the 2007-08 period preceded a massive market meltdown later that year. Still, this comparison helps provide a reference point for the current downturn:

With this as background, it’s time to put together a shopping list in preparation for a trading rally. Below is a table that shows the stocks that were furthest below their lower Bollinger bands — and therefore among the most technically oversold — as of Thursday’s close. This table is based on a screen with the following criteria:

1. U.S.-traded stocks with prices above $7,
2. Thursday volume above 1 million shares, and
3. Prices more than 5% below the lower band. Leveraged ETFs are not included.

This isn’t to be taken as a recommendation of these particular stocks — some of which were down on company-specific news — but rather as a guide that provides a starting point for further research. The 99 stocks that made the cut are as follows: