Is Stock Sell-Off Done Yet? This Analyst Says We Are In The Period When Seasonally Strong Part Of Month Begins - SPDR S&P 500 (ARCA:SPY)

Stocks pulled back sharply in the session immediately after the Fed rate decision, with major averages settling at their lowest levels since early November.

What Happened: Carson Group chief market strategist Ryan Detrick, on Thursday, shared a graphic on Twitter showing Dec. 15 being historically an inflection point from which stocks begin to rally hard.

He said that “stocks tend to bottom in December” around the 15^th and then the “seasonally strong part of the month begins.”

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Stocks tend to bottom in December on the 15th, then the seasonally strong part of the month begins. pic.twitter.com/MtgW9H0k8M

— Ryan Detrick, CMT (@RyanDetrick) December 15, 2022

That said, the chart shared by Detrick shows that this time around, stocks materially underperformed the first-half average for December. Nevertheless, if the market keeps its tryst with the Santa Claus rally, a recovery could kick in from the bottom, potentially around the levels reached on Thursday.

Given the lack of any major catalyst between now and the year-end, the market direction will likely be driven by a combination of fear and greed — fears of a potential recession looming on the horizon and greed stirred by the cheap valuations of stocks.

Tech stocks, including some bellwethers from the space, have led the year’s sell-off.

Meta Platforms Inc. META is down close to 66% and Tesla Inc. TSLA has plummeted over 55%.

Notwithstanding the weakness, analysts vouch for the fundamental strength of some of these companies.

Price Action: The SPDR S&P 500 ETF Trust SPY, an exchange-traded fund that tracks the performance of the broader S&P 500 Index, closed Thursday’s session down 2.45%, to $389.63, according to Benzinga Pro data.