Stock prices could be heading for a rebound: analyst

Albert Edwards, chief strategist at Societe Generale Cross Asset Research in London, said in a note this week: "We now have the technical conditions for a decent bear market rally."

Edwards, who predicted the extent of the current problems some months ago, said that markets move in "waves," adding: "In bear markets, huge lurches down are often followed by significant rallies."

For this reason, some investors are now finding "a lot more stocks worth buying," he said.

"It is in the area of valuation where the recent market slump allows us to be strategically somewhat less bearish," he added.

He said that, while equities could be seen as cheap in Europe, that was still not true in the United States.