Stocks Dip Back To Early November Lows But This Analyst Says Rally May Be Around The Corner

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.

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